By Jon Peterson
San Francisco-based Swift Real Estate Partners has sold the 68,987 square foot empty office building located at 1265 Borregas Avenue in Sunnyvale for $24 million or $347 per square foot, according to public records. Swift had purchased the asset in August of 2013 for, $12 million, or roughly $174 per square foot.
The buyer of the property is Los Angeles-based CBRE Global Investors. Both the buyer and the seller declined to comment when contacted for this story. There was no broker involved in the sale as a listing agent.[contextly_sidebar id=”R45Uw5xwGkZ4eXDSs8m0M0pyQ95dhOHg”]The property had been vacant for a long time. There were no tenants in the property even at the time Swift had acquired the asset 2013. The real estate investment firm had acquired the property along with another vacant asset, 78,000 square foot building located at 1272 Borregas Avenue. This building was purchased at the time for $17.5 million, or roughly $224 per square foot. The expectation was that the owner was planning to renovate the two buildings by investing another $8 million to $10 million into the two properties.
The CBRE Investors purchase is intended lease up the asset and transfer the ownership of the building over to Google, according to sources with direct knowledge of the transaction. Until recently, Swift had been planning to fully market the property for lease until the offer came in from the new ownership group.
Swift had acquired 1265 Borregas on behalf of a single financial partner. Since it acquired this property, the company has raised capital through a commingled fund format. It’s now in engaged in the process of searching for value-add office and industrial assets to acquire on the West Coast for its Swift Real Estate Partners Fund II.