By Jon Peterson
After leasing up one of its recently acquired properties in Silicon Valley, New York City-based Tishman Speyer is looking to capitalize on the new tenancy by placing on the market for sale the 719,000 square foot office campus located in Sunnyvale on Crossman Drive, according to sources that are familiar with the planned sale of the complex. There is no formal asking price that has been disclosed for the property, however, the circumstances that have been driving mega sales across the region over the last couple of years are aligned to make this one of the biggest transactions Silicon Valley has seen.
Tishman Speyer has awarded the sales listing to the San Francisco office of Newmark. The people working on the marketing efforts include Steven Golubchik, Kevin Shannon, Edmund Najera, Jonathan Schaefler and Darren Hollak. Both the current property owner and the listing agent have declined to comment when contacted for this story.
Even without a pricing guidance, the sale could reach close to $1 billion. Should this happen, it would be the second mega transaction over $750 million to happen within Silicon Valley over the past few months. The other transaction included London-based AGC Equity Partners, which paid $780 million to acquire several buildings within San Jose’s Coleman Highline project that was sold by Hunter Storm and Sansome Partners.
Tishman Speyer has been the owner of the Crossman Drive complex since April of last year when it agreed to acquire the property for $365 million, according to sources that had confirmed the sale. The asset at that time was leased to NetApp. This tenant had made the decision to move out of the Sunnyvale property and move into space at 700 Santana Row in San Jose with a lease for 300,000 square feet.
NetApp has stated that it was planning to remain in the property in Sunnyvale through 2021. December of 2021, Tishman Speyer announced that it had signed a lease with Meta (formerly Facebook) for the entire 719,032 square feet of space in the complex.
The campus has a total of four buildings. It features many modern amenities such as a gym, basketball court, lockers, showers, outdoor volleyball court, executive briefing center, a full-service cafeteria, multiple kitchens, break centers and phone rooms. Metamates will have access to Tishman Speyer’s popular ZO suite of lifestyle, convenience and amenity service offerings.
The Sunnyvale Class A office market had a total inventory of 13.7 million square feet at the end of 2021, according to sources that track commercial real estate leasing across Silicon Valley. The market had a vacancy of 10.9 percent for the same time period.