SUNNYVALE — A giant and new Sunnyvale workplace constructing that was fully leased to a biotech agency has now been purchased, even earlier than its building is full, an indicator of the new Silicon Valley business property market.
23andMe, a biotechnology and private genomics firm, had beforehand struck a deal throughout 2018 to lease a Sunnyvale workplace constructing effectively earlier than it was constructed, and an affiliate of Stockbridge Capital Group this month purchased the putting new constructing at 221 N. Mathilda Ave.
Working as SCG Grove 221, Stockbridge Capital paid $183 million for the 146,000-square-foot workplace constructing, in line with public paperwork filed with Santa Clara County officers on March 15. The general public information present the shopping for entity is managed by Stockbridge in San Francisco.
The constructing, whose interiors are presently nonetheless underneath building, is close to the nook of North Mathilda Avenue and West California Avenue and is simply south of Central Expressway. The workplace advanced additionally has a distinguished show of art work on the facet of the constructing that faces Mathilda Avenue.
One of many attracts for the brand new proprietor, in line with Silicon Valley business property specialists, was the long-term money circulate ensuing from the rents that 23andMe has agreed to pay.
“Stockbridge was on the lookout for an funding with 10 years of income,” stated Erik Hallgrimson, an govt managing director with Cushman & Wakefield, a business actual property agency.
The workplace constructing and an adjoining parking construction had been developed by Spear Road Capital. In 2014, Spear Road purchased the property for $16.1 million, and in 2015, the developer obtained a $10 million mortgage on the property, county information present. The assessed worth of the constructing was $23.eight million as of mid-2018, in line with county paperwork.
“Spear Road made a pleasant revenue on the sale of the constructing,” Hallgrimson stated.
One other main draw for the patrons: The constructing is situated in a selection Silicon Valley spot.
“You’ve acquired a constructing that’s inside strolling distance to Caltrain and is close to downtown Sunnyvale,” stated Dave Sandlin, an govt vp with Colliers Worldwide, a business actual property agency. “The one places that is perhaps higher on this space is perhaps workplace buildings in downtown Palo Alto or downtown Mountain View which might be close to Caltrain.”