$222M Sunnyvale Office Sale Is Latest All-Cash Deal As Rates Climb
A $222M office transaction in Sunnyvale, California, is another sign that all-cash deals are growing in popularity as interest rate hikes keep coming, making financing a nonstarter for many investors.
The buildings span three addresses: 684 West Maude Ave., 686 West Maude Ave. and 480 North Pastoria Ave. The deal illustrates that while the Bay Area office market has struggled, demand for office space in Silicon Valley is one of the lone bright spots. The price roughly translates to $1,100 per SF, one of the priciest office transactions in the Bay Area this year.
Harvest Properties and Invesco Real Estate sold the complex, dubbed The Catalyst. LinkedIn has a 15-year lease on the property, according to The Registry. The complex is still under development, with the 684 West Maude location serving as the project’s Phase 1.
All-cash transactions are booming, particularly from sovereign wealth funds and international fund managers, as borrowing costs price out much of the rest of the market. Accordingly, some of the largest deals this year have gone to all-cash bids from foreign investors.