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Tishman Speyer flipped a four-building Silicon Valley office campus occupied by Meta for nearly double what it paid for the property just over a year ago.
CommonWealth Partners purchased the campus for $707M, Bloomberg reports. The 719K SF complex at 1375 Crossman Ave. was occupied by software company NetApp Inc. before the company vacated the property and relocated to San Jose’s Santana Row last year.
Meta, Facebook's parent company, in December 2021 leased the entire complex, a move that significantly improved the value of the property due to investor interest in high-credit tenants in lucrative industries like tech.
“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,” CommonWealth CEO and Managing Partner Brett Munger said in a press release.
“The acquisition of a top-quality asset in this dynamic submarket that has become a hotbed for expansion by Google, Amazon, Meta and other high credit tech companies diversifies our portfolio’s tenant mix and reinforces our commitment to being a leading provider of high-quality office space in the region,” Munger said in the release.
The sale is one of the largest deals by dollar volume in the Bay Area in the past year and marks yet another high-dollar coastal spend for CommonWealth, which in late 2021 paid more than $1B for Hudson Commons in New York.
Other large Silicon Valley deals in the last calendar year include AGC Equity Partners' $780M purchase of the three-building Coleman Highline office complex occupied by Yahoo in north San Jose, according to the Silicon Valley Business Journal.
Both Silicon Valley transactions represent renewed bullishness in the return-to-office movement in the South Bay, which has seen a flurry of relocations and transactions in recent months in the life sciences and office segments.
Newmark’s Darren Hollak, Steven Golubchik, Kevin Shannon and Jonathan Schaefler represented Tishman Speyer in the transaction.
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