$15 million deal for South Bay tech campus points to feeble office market
A big tech campus in Sunnyvale has been bought for about $15 million in a fresh sign of a frail Bay Area office market. Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to print (Opens in new window)Click to email a link to a friend (Opens in new window)Click to share on Reddit (Opens in new window)
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SUNNYVALE — A tech campus in Sunnyvale was purchased for millions less than its previously assessed value, county documents show.
Ellis Partners, acting through an affiliate, paid $15.5 million for the office and research campus at 755 North Mathilda Ave., according to documents filed on Monday with the Santa Clara County Recorder’s Office. That price was 54% below the property’s estimated value of $33.8 million as of January 2024.
The campus consists of two office buildings and a courtyard. The buildings together total 105,000 square feet, according to Ellis Partners.
“We are planning a significant renovation and modernization of the property, including modernized facade, lobbies, and courtyard improvements,” said Jim Ellis, co-founder and managing principal executive with Ellis Partners.
Newmark commercial real estate brokers Steven Golubchik, Ramsey Daya, Edmund Najera, Chris Moritz, Darren Hollak, Francesca Zappula and Brendan Raney arranged the property purchase.
LinkedIn has leased the property and both buildings are being offered for sublease. The lease end date wasn’t immediately known.
The office campus attracted potential buyers at a brisk pace, according to Newmark brokers. Clarion Partners, through an affiliate, sold the tech campus to Ellis Partners, according to county documents.
The relatively low price for the office and research complex could entice potential tenants that would sublease one or both buildings.
“Investors are gaining increasing confidence in the leasing market,” said Najera.
