Tishman Speyer Shops Buyers For Newly Leased Meta Campus, With Bids Expected To Hit $1B

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Facebook's Menlo Park Headquarters

Two months after Tishman Speyer secured the largest private sector lease in the U.S. for a Silicon Valley office campus, the landlord hopes to sell that same property for top dollar after less than one year of ownership.

The New York investor acquired the Class-A Sunnyvale office campus in April for $365M. After securing Meta as the sole tenant of the 719K SF complex, the landlord aims to shop the property, with bids slated to hit $1B, according to Green Street Advisors. A $1B deal would work out to about $1,390 per SF and mark a 174% premium over what Tishman paid for the property last year, when it was soon to be vacant.

Meta inked a deal in December for the entirety of the four-building property situated in the Moffett Park neighborhood. Facebook, which rebranded the social media site's parent company as Meta in late October, has been based out of a sprawling Menlo Park office campus since 2011.

New York-based Tishman has tapped Newmark to market the property, with a listing campaign launching as early as this week, Green Street reports.

The potential sales premium also reflects nearly $290M in improvements underway at the property. Meta, which will fully occupy the campus under a 13-year triple-net lease, is fronting the bulk of that capital.

A $1B sale would tie the record for the priciest office transaction in the region, according to Green Street’s Real Estate Alert’s Deal Database. Verizon’s 939K SF Oath Campus in Sunnyvale traded for that price in 2019. So did the 800K SF Shoreline Technology Center in Mountain View in 2018.

The Meta buildings wrapped construction in 2001, 2007 and 2013 as part of the 10.7M SF Moffett Park development, which includes Google, Amazon and Lockheed Martin as tenants and is 98% occupied. Including the for-sale campus, Meta counts 1.8M SF there.

“Silicon Valley remains the global center of innovation and its importance will continue to grow even as other innovation hubs emerge,” Tishman Speyer President and CEO Rob Speyer said in a statement at the time of the Meta lease.

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Related Topics: Amazon , Facebook , Google , Meta , Rob Speyer , Tishman Speyer
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