By Jon Peterson
In a joint venture, San Francisco-based TMG Partners and Farallon Capital Management, LLC will soon start the development of a 380,000 square foot build-to-suit project for San Jose-based Samsung Information Systems America, Inc. in Mountain View located at Cypress Business Park, 625-685 Clyde Avenue. The total cost of the project is approximately $200 million, according to sources familiar with the development.
The project for the South Korean U.S. subsidiary is expected to start in approximately 30 days. Studios Architecture of San Francisco is the project architect and Milpitas-based Devcon Construction is the general contractor on the project, according to a prepared statement from TMG in September 2012. Matt Von der Ahe, a vice president in CBRE’s San Jose office, and Hyoung Chon-Yeun, senior vice president and founder and head of CBRE’s Korea Desk, also located in the firm’s San Jose office, represented the tenant.
“Our lease with [Samsung] is further proof of the continuing confidence in the Silicon Valley market,” said Michael Covarrubias, chairman and CEO of TMG Partners, in a prepared statement. “The synergies that have historically been so valuable in this region remain and are still a strong argument for companies to expand their business presence here.”
There are some existing buildings on the site. These are single-story office/industrial buildings that will need to be scraped to make room for the next project. The lease with Samsung will run for at least 10 years. The company is planning to use the new facility for its US headquarters location for its research arm of the firm.
Samsung’s R&D Center will relocate from its current facility located at 75 West Plumeria Drive in North San Jose to the 8.5-acre site and expand to two new six-story class-A office buildings with two 5-6 story parking structures with a total of 1,000 parking spaces. The new facility will be oriented around a central plaza with views overlooking the adjacent Sunnyvale golf course.
The entire project will be LEED platinum certified.
The city’s former mayor, Michael Kasperzak, also in the same prepared statement, added, “It is a testament to the increasing economic diversity of Mountain View to welcome such a prestigious global company as Samsung. We appreciate the confidence of a world-wide company identifying our city as a benefit to their growth and we look forward to having them be an active member of the corporate community.”
There are as many as three banks that will be providing construction financing for the development. The project is located adjacent to the 101 Bayshore Freeway.