Union Investment Buys LinkedIn Campus in Sunnyvale for $222MM

Bay Area, Silicon Valley, Palo Alto, Sunnyvale, Menlo Park, LinkedIn, Stanford University, San Jose State University, Union Investment, The Catalyst

(Editor’s Note: According to a report from The Mercury News citing public records, the sale closed for $222 million. The three buildings are located at 684, 810 and 870 W. Maude Ave. in Sunnyvale, according to public records reviewed by The Registry. The seller of the property was a joint venture between Harvest Properties and Invesco Real Estate.)

Union Investment, one of Europe’s leading investment managers, has acquired The Catalyst office building in Sunnyvale, California, a city which many regard as the epicenter of Silicon Valley. Built in 2020, The Catalyst is one of the newest trophy office buildings in this popular submarket. This latest US acquisition was completed on behalf of Union Investment Real Estate’s open-end real estate fund, Unilmmo: Europa. The purchase price was not disclosed.

“The Catalyst, our second acquisition in the Silicon Valley, fits extremely well within our continued US growth story. Sunnyvale is a very attractive location situated within the valley, benefiting from its close proximity to the other desirable, but more expensive, submarkets of Palo Alto and Menlo Park. Sunnyvale also benefits from its adjacency to Stanford University, Santa Clara University as well as San Jose State, all of which offer Silicon Valley employers highly sought-after tech talent. As tech companies continue to redefine & optimize their post pandemic office needs, we anticipate vacancy rates in Sunnyvale to fall further in the near term and office rents are set to rise,” said Matthew Scholl, Executive Director and Head of Investment Management Americas at Union Investment.

The building was completed in 2021 and offers roughly 195,000 sf of lettable office space. The Catalyst is fully leased to a business networking platform for 15 years. The property is located immediately adjacent to the company’s headquarters and maintains a LEED Gold certification and WELL certified design. 

“Catalyst is truly a best-in-class office property with a focus on sustainability and wellness. The building has an HVAC carbon filters for measuring that can measure air quality, for example and it and is also equipped with digital and automated building system controls such as hands-free entrances, elevators and doors. The View Smart Windows are a particular highlight, darkening automatically in response to outdoor conditions, thus reducing heat and glare without affecting the exterior view. This smart solution enables lighting and air conditioning costs to be reduced. Along with the outstanding credit profile & and lease term of the tenant, these ESG attributes made The Catalyst particularly attractive for UniImmo: Europa,” said Willis Kim, Vice President and Head of US West Coast and Canada at Union Investment.

Union Investment’s US portfolio now comprises 34 properties with a total value of around EUR 6.7 billion. Last year, the Hamburg-based real estate investment manager began investing in two new asset classes in the US: grocery-anchored retail and the multi-family market. 

West Coast Commercial Real Estate News