Silicon Valley's Property Spotlight: Sunnyvale Park Place and Oakmead West Hit the Market
Silicon Valley's commercial real estate scene is abuzz with the listing of Sunnyvale Park Place and Oakmead West, a significant seven-building office and R&D campus in Sunnyvale, managed by Hines and listed in partnership with Goldman Sachs. The CBRE-listed property spans 431,095 square feet and boasts a prime location near major highways and downtown Sunnyvale, making it a coveted spot for businesses.
Constructed in 1998, the campus currently houses notable tenants such as Analog Bits, Mitel, and NTT Research. With an asking price of around $143 million, or approximately $328 per square foot, the property presents an attractive investment opportunity at a 6 percent cap rate, despite being 56 percent leased with a weighted average lease term of 5.5 years.
This marks a significant shift from its 2019 acquisition by Hines for $188 million when the property was 96 percent leased, highlighting the evolving dynamics of the Sunnyvale submarket. Hines, known for its global footprint in real estate investment and property management, had planned capital improvements to enhance the property's value further.
As Sunnyvale continues to emerge as a key submarket in Silicon Valley, the sale of Sunnyvale Park Place and Oakmead West represents a pivotal moment for investors looking to capitalize on the region's growth and the property's strong tenancy and strategic location.
Game-Changing Deal: Prologis Eyes Former Raiders HQ for Oakland Soccer Teams
In a strategic move poised to reshape local sports infrastructure, Prologis, a leading real estate investment trust, is in advanced discussions to acquire the former headquarters and training facility of the Oakland Raiders in Alameda for $24 million. This initiative, recommended by City of Oakland staff and pending Oakland City Council approval, intends to provide a new home for Oakland Pro Soccer LLC, supporting the Oakland Roots men’s professional soccer team and the Oakland Soul women’s pre-professional soccer team.
Spanning over 16 acres and comprising a two-story office building alongside a single-story training facility, the site offers extensive space for both office use and athletic training. The City of Oakland and Alameda County, which jointly acquired the property in December 2020, are set to divide the net sale proceeds, estimated at $11.5 million after expenses.
This sale not only aims to alleviate the city’s financial burdens associated with the property’s upkeep but also to bolster Oakland’s soccer scene and its bid for involvement in the 2026 World Cup. Prologis, known for its extensive portfolio of logistics facilities globally, steps into the sports realm with this deal, promising a vibrant future for soccer in Oakland and potential international spotlight with the upcoming World Cup.