Transaction Is Silicon Valley’s Largest Ever Investment Sale, According to Newmark
(EDITOR’S NOTE: According to sources familiar with the details of the transaction, the sale closed at $707 million after some refunds were made to Meta. This brings the pricing on a per square foot basis close to $983.)
JUNE 9, 2022 – Tishman Speyer today announced the sale of the Sunnyvale office campus in California to CommonWealth Partners, a national commercial real estate developer, investor and operator.
Tishman Speyer acquired the campus, located on Crossman Drive in the desirable Moffett Park neighborhood, from NetApp in April 2021 for $356 million. Just seven months later, the company leased the entire property to Meta, the year’s largest new private sector office lease in the U.S. Meta’s 719,037 square foot lease includes four modern office buildings, two parking structures, and ample outdoor recreational space.
This acquisition brings CommonWealth Partners’ holdings in the Moffett Park/Sunnyvale market to over 1.25 million square feet of LEED Gold/Platinum Trophy office space. Established in California in 1995, CommonWealth Partners has a long and successful history of ownership in Silicon Valley and strong local ties in the market, as illustrated by its recently executed lease renewal of international law firm Wilson Sonsini Goodrich & Rosati at 650 Page Mill Road in Palo Alto.
Tishman Speyer CEO Rob Speyer said, “Sunnyvale is a great success story. We are pleased that CommonWealth Partners has agreed to buy the campus, now fully leased to Meta. The sale and the lease demonstrate that Silicon Valley remains a global center of innovation. Moreover, this deal demonstrates that the market for highly collaborative, well-designed office space with accessible green space and top-level amenities is still strong.”
The Sunnyvale campus features an array of modern 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.
“This was a compelling investment for CommonWealth Partners, increasing our presence in this strategic, high growth submarket of Silicon Valley to more than a million square-feet in the Moffett/Sunnyvale area,” said Brett Munger, CEO and Managing Partner of CommonWealth Partners. “The acquisition of a top-quality asset in this dynamic submarket that has become a hotbed for expansion by Google, Amazon, Meta and other high credit tech companies diversifies our portfolio’s tenant mix and reinforces our commitment to being a leading provider of high-quality office space in the region.”
Tishman Speyer Senior Managing Director Carl Shannon added, “During a period of significant uncertainty, we seized on a rare opportunity to purchase and reposition an emptying office campus in one of the world’s foremost technology and innovation hubs. We are grateful to our co-investors for their confidence in us – and to reward that faith with an outstanding return in just over one year’s time.”
Kevin Shannon, Steven Golubchik, Phil Mahoney, Jonathan Schaefler and Darren Hollak of Newmark represented Tishman Speyer in the sale.
About Tishman Speyer
Tishman Speyer is a leading owner, developer, operator and investment manager of first-class real estate in 30 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 484 properties, totaling 219 million square feet, with a combined value of over $121 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.
About CommonWealth Partners
CommonWealth Partners, LLC is a vertically integrated, privately owned real estate investment, development and management organization. They are headquartered in Los Angeles and New York with over $10 billion of assets located throughout the United States, including New York, Washington DC, Seattle, San Francisco, Silicon Valley, San Diego, Los Angeles, and Boston. They offer a wide array of services including investment and capital market transactions, portfolio management, asset management, property management, marketing, leasing, development, and reporting with a sharp focus on tenants and investors. Learn more about CommonWealth Partner’s sustainability program at https://www.commonwealth-partners.com/sustainability/highlights