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Tishman Speyer announced the sale of the Sunnyvale office campus in California to CommonWealth Partners, a national commercial real estate developer, investor and operator.
Tishman Speyer acquired the campus, located on Crossman Drive in the desirable Moffett Park neighborhood, from NetApp in April 2021 for $356 million. Just seven months later, the company leased the entire property to Meta, the year’s largest new private sector office lease in the U.S. Meta’s 719,037 square foot lease includes four modern office buildings, two parking structures, and ample outdoor recreational space.
This acquisition brings CommonWealth Partners’ holdings in the Moffett Park/Sunnyvale market to over 1.25 million square feet of LEED Gold/Platinum Trophy office space. Established in California in 1995, CommonWealth Partners has a long and successful history of ownership in Silicon Valley and strong local ties in the market, as illustrated by its recently executed lease renewal of international law firm Wilson Sonsini Goodrich & Rosati.
Tishman Speyer CEO Rob Speyer said in a statement, “Sunnyvale is a great success story. 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. Moreover, this deal demonstrates that the market for highly collaborative, well-designed office space with accessible green space and top-level amenities is still strong.”
The Sunnyvale campus features an array of modern amenities, including a gym with basketball court, lockers, showers, outdoor volleyball court, executive briefing center, a full-service cafeteria, multiple kitchens, break centers, phone rooms and other common areas.
“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, CEO and Managing Partner of CommonWealth Partners. “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.”
Tishman Speyer Senior Managing Director Carl Shannon added, “During a period of significant uncertainty, we seized on a rare opportunity to purchase and reposition an emptying office campus in one of the world’s foremost technology and innovation hubs. We are grateful to our co-investors for their confidence in us – and to reward that faith with an outstanding return in just over one year’s time.”
Kevin Shannon, Steven Golubchik, Phil Mahoney, Jonathan Schaefler and Darren Hollak of Newmark represented Tishman Speyer in the sale.