(EDITOR’S NOTE: According to industry sources familiar with the transaction, Tishman Speyer paid $365 million for the campus. The campus is currently occupied by NetApp. In a separate statement, NetApp announced its intentions to relocate to 700 Santana Row, in San Jose, where it has leased 303,000 square feet. NetApp will remain at its current Sunnyvale headquarters through 2021.)
Transaction Highlights Firm’s Growth in Established and Emerging Technology Driven-Markets
New York City and Sunnyvale, CA – April 15, 2021 – Tishman Speyer, one of the world’s leading real estate developers and owners, today announced the acquisition of a four-building Class A office campus in Sunnyvale, CA. The site, located on Crossman Drive in the desirable Moffett Park submarket, also includes two parking structures plus outdoor recreational space. It currently serves as the headquarters location for NetApp, which plans to relocate later this year following a short lease back.
The transaction adds to Tishman Speyer’s growing footprint in the Silicon Valley area and in the Bay Area overall. The firm’s existing portfolio of signature properties in the region includes Bayside Towers in Foster City, 400 Castro Street in Mountain View, and several major properties in San Francisco. The latter group includes, among others, 222 Second, which is leased to LinkedIn, and the transformational Mission Rock project underway in collaboration with the San Francisco Giants.
Plans call for the Sunnyvale property, which totals 700,000 square feet of office space in excellent condition, to be re-leased to one or more tenants after capital improvements. Most of the property’s broad array of amenities – including a gym with basketball court, lockers, showers, outdoor volleyball court, executive briefing center, a full-service cafeteria, multiple kitchens, break centers, phone rooms and other common areas – will be retained. In addition, Tishman Speyer plans to introduce its popular ZO suite of lifestyle, convenience and amenity service offerings to tenants at the campus.
Tishman Speyer President & CEO Rob Speyer commented, “Silicon Valley is at the epicenter of the innovation economy and demand for high-quality office space, specifically around Moffett Park, is very strong. The right real estate can support and even galvanize innovation, as expert design, accessible green space, and top-level amenities help create dynamic and thriving workplaces. Our goal is for the Sunnyvale campus to do just this.”
He continued, “Tishman Speyer is focused on markets where the best tech entrepreneurs are collaborating with leading academic institutions. Going forward, we plan to continue actively investing in the Bay Area along with markets in Boston, San Diego, Austin and more.”
Phil Mahoney, Jon Mackey, and Mike Saign at Newmark will handle leasing at the complex on behalf of Tishman Speyer. Joe Brady, Mike Drew, Peter Hamann and John Brady at Savills represented NetApp in this transaction announced today.
About Tishman Speyer
Tishman Speyer is a leading owner, developer, operator and investment manager of first-class real estate in 28 key markets across the United States, Europe, Asia and Latin America. We develop, build and manage premier office, residential and retail spaces for industry-leading tenants, as well as state-of-the-art life science centers through our Breakthrough Properties venture. With global vision, on-the-ground expertise and a personalized approach, we are unparalleled in our ability to foster innovation, quickly adapt to global and local trends and proactively anticipate our customers’ evolving needs. By focusing on health and wellness, enlightened placemaking and customer-focused initiatives such as our tenant amenities platform, ZO., and our flexible space and co-working brand, Studio, we tend not just to our physical buildings, but to the people who inhabit them on a daily basis. Since our inception in 1978, Tishman Speyer has acquired, developed, and operated 453 properties, totaling 210 million square feet, with a combined value of approximately $113 billion (U.S.). Our current portfolio includes such iconic assets as Rockefeller Center in New York City, The Springs in Shanghai, TaunusTurm in Frankfurt and the Mission Rock neighborhood currently being realized in San Francisco.