SUNNYVALE — A big tech campus in Sunnyvale that’s leased to the owner of the Facebook app has landed a major real estate buyer in a deal that represents a Silicon Valley success story.
Moffett Green, a campus on Crossman Avenue in northern Sunnyvale, has been purchased for $707 million, according to sources with knowledge of the transaction.
CommonWealth Partners bought the campus, which totals 719,000 square feet, from Tishman Speyer, according to the seller.
“This was a compelling investment for CommonWealth Partners, increasing our presence in this strategic, high-growth submarket of Silicon Valley to more than a million square feet in the Moffett/Sunnyvale area,” said Brett Munger, chief executive with CommonWealth, a major real estate development and investment firm.
The deal represents a big win for Tishman Speyer, which bought the campus in April 2021 for $365 million. That represents an eye-popping jump of 93.7% in the value of the four-building site in slightly more than a year.
Just a few months later, Tishman landed Facebook app owner Meta Platforms as a tenant for the entire campus, a deal that was the largest office lease in Silicon Valley in 2021.
“Sunnyvale is a great success story,” said Rob Speyer, chief executive officer with Tishman Speyer. “We are pleased that CommonWealth Partners has agreed to buy the campus, now fully leased to Meta. The sale and the lease demonstrate that Silicon Valley remains a global center of innovation.”
Brokers Kevin Shannon, Steven Golubchik, Phil Mahoney, Jonathan Schaefler, Edmund Nadjera and Darren Hollak of Newmark, a commercial real estate firm, represented Tishman Speyer in the sale.
“The significant investor interest in this offering underscores the continued demand for trophy assets located within markets with a high barrier to entry,” said Golubchik, a Newmark executive vice chairman.
The just-bought Moffett Green campus offers an array of amenities and access from offices in the complex to nearby outdoor areas.
“Office absorption has been dominated by innovation tenants seeking best-in-class campuses like Moffett Green to attract and retain talent,” said Shannon, co-head of U.S. Capital Markets for Newmark.
Among the Moffett Green amenities: a gym with a basketball court, lockers, showers, an outdoor volleyball court, an executive briefing center, a full-service cafeteria, multiple kitchens, break centers, phone rooms and other common areas.
“The market for highly collaborative, well-designed office space with accessible green space and top-level amenities is still strong,” Speyer said.
Tech companies have shown a big appetite for office space to lease and properties to buy in the Sunnyvale area.
“This dynamic submarket has become a hotbed for expansion by Google, Amazon, Meta and other high-credit tech companies,” Munger said.
The acquisition suggests that plenty of investors and tech companies seek to invest and expand in Silicon Valley.
Claims in some circles have emerged that a corporate exodus has sapped the vitality of Silicon Valley.
“This deal definitely shows the strength of the Silicon Valley market,” said Mahoney, an executive vice chairman with Newmark. “The value and resiliency of Silicon Valley is unmatched.”
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