By Jon Peterson
An entity associated with the family of Roger Brunello, the founder of Le Boulanger restaurants, is placing on the market a vacant office building in Sunnyvale located at 305 North Mathilda Avenue. The sales price could be around $20 million, or just under $590 per square foot, as stated by sources that are familiar with the office building sales market in Sunnyvale. The family has owned the property since 1994, according to public records.
The property at 305 North Mathilda totals 33,911 square feet. In the past it had been used for research & development purposes. Almost all of the space is located on the first floor, which totals 33,000 square feet, and the second floor covers 911 square feet. The property was first developed in 1974, and it also has a total of 136 parking spaces.
The asset is located within the Peery Park submarket. According to sources that track this region, the area has no competitive R&D buildings with the ability to deliver this size requirement. The asset has a strong location, since its situated just around half a mile from the Sunnyvale Caltrain station. This would give employees good access to public transportation, which is a very sought-after amenity.
R&D space in the Peery Park submarket has been dropping since 2010. The amount of space for this type of real estate has decreased as much as 17 percent over the past nine years, according to sources that track leasing these types of spaces throughout the region. Around 26 percent of the current R&D inventory in the submarket is occupied by Microsoft, Apple or LinkedIn creating very tight vacancy for this type of product. According to some estimates, the vacancy is now below 5 percent.