By Meghan Hall
NortonLifeLock–formerly known as Symantec–has been slowly selling off a number of its assets, and has found a buyer for more of its Bay Area portfolio. In a deal that was stuck last week, San Francisco-based TMG Partners has entered into an agreement to buy 350-380 Ellis Street in Mountain View. SEC Filings indicate that TMG Partners will pay $358 million in cash for the properties.
Documents state that the sale for NortonLifeLock’s former headquarters will close on June 30, 2021, subject to customary closing conditions and deliveries. TMG is expected to deliver $3.7 million into an escrow account on June 9th, and an additional $7 million will be added to the account on June 18th. TMG does have the option to extend the closing date, however, to July 15th. Under these circumstances, TMG would be required to deposit an additional $10 million into the escrow account.
The assets contain 428,459 square feet of space spread across five buildings. The buildings were constructed in 2011, according to CommercialCafe, and sit on about 19.6 acres of land. NortonLifeLock intends to lease building C from TMG Partners after the close of escrow, pursuant to the leaseback. Documents explain that the lease will include an initial seven-year term, as well as base rent abatement for the first 18 months of the contract. An early termination fee of $10 million will be paid in the event of early termination of the lease, states the SEC filing.
NortonLifeLock has been selling a number of Bay Area assets in recent months. At the beginning of April, the software security firm closed on a deal to sell two assets at 515 and 545 N. Whisman Rd. for $100.5 million. The buyers include Steelwave and Angelo Gordon & Company. Each building totals 76,200 square feet.
Both deals are part of a 10-asset portfolio that NortonLifeLock has been vying to sell since early last year. The portfolio totals 706,737 square feet, and initially, NortonLifeLock had sought to sell the entire portfolio to a single buyer.
“Never before offered to the marketplace, the offering represents a generational opportunity to acquire a portfolio of 10 buildings totaling 706,737 square feet in the heart of Silicon Valley,” stated an initial offering memorandum circulated by Cushman & Wakefield.
Of the buildings within the portfolio, several buildings remain on the market, according to a public records search. 455, 487 and 501 E. Middlefield Rd., which encompass 128,000 square feet of space, are also for sale. The buildings include more than 580 workstations as well as 9,200 square feet of network operation space.