Jazz Pharmaceuticals just nabbed a chunk of coveted Palo Alto space in the pristine Stanford Research Park by inking a deal with the university's real estate group to construct a building at 3170 Porter, according to a recent SEC filing. The R&D structure will contain 95k to 105k SF, with a base rent of $5.50/SF each month and is near its current space at 3180 (pictured). The pharma giant moved its HQ from Palo Alto to Dublin, Ireland, three years ago (they have lush greenery here, too). Jazz expects to pay about $17M for leasehold improvements and net of TI allowances, adds the filing. Palo Alto Class-A office vacancy was rock bottom in Q4, at 2.5%.
The market is on the edge of its seat to find out just how high a rare four-building cluster just steps away will sell for (the deal could close this month). Valuations are through the roof, sources told us last month. The complex on Hillview totals 292k SF. The buildings are owned by business software maker Tibco (and serves as its campus). Facing declining revenues, Tibco agreed to be bought by private equity firm Vista Equity Partners for $4.3B in September, taking it from public to private. Selling off its real estate is part of that buyout. The capital chasing the deal is very diverse and very global, our sources say. Expect to see eye-popping numbers. Cushman, which is marketing the site, didn't respond to a request for comment.
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