Apple-leased Silicon Valley office building is bought as value jumps
Despite Bay Area office weakness, some properties gain value
SUNNYVALE — A big Sunnyvale building occupied by tech titan Apple has been bought in a deal that shows pockets of strength can defy the ailments of a feeble Bay Area office market.
A veteran real estate firm paid $41 million for the office and research building in Sunnyvale, according to documents filed on Aug. 28 at the Santa Clara County Recorder’s Office.
An affiliate managed by BentallGreenOak bought the office and research building, which is located at 825 Stewart Drive in Sunnyvale, the county real estate records show.
The building totals nearly 75,400 square feet and for several years has been fully leased to Cupertino-based Apple.
The purchase by BGO 825 Stewart, the BentallGreenOak affiliate, points to rising property values for the office and research building, which occupies 4.3 acres.
In 2016, the seller, an affiliate of real estate firm GI Partners, paid $34.7 million for the office building, county records show.
The deal demonstrates that even though sky-high office vacancies haunt the Bay Area, some properties are still gaining value.
The recent purchase price of $41 million is 18.2% higher than what GI Partners paid seven years earlier.
This spring, GI Partners hired JLL, a commercial real estate firm, to market the office building.
The building was renovated in 2015, and Apple added some wide-ranging improvements of its own to the property, according to JLL.
It wasn’t immediately clear what sort of work Apple does inside the building.
“The two-story property offers highly specialized lab improvements,” JLL stated in March.
JLL brokers Will Connors, Daniel Renz, Michael Manas, Cheri Pierce, Kendall Willet and Aisling Duffy led the search for a buyer.
“825 Stewart is a tremendous opportunity to acquire a highly specialized facility occupied by one of the world’s largest technology companies in one of the most diverse tech economies in the country,” JLL broker Connors said.
Full article by George Avalos: