SUNYVALE, CA-Tishman Speyer has recapitalized a 425,000-sf, fully leased class A office complex here in a deal that values the asset at $260 million. Two years after acquiring the three-building development for a reported $174 million, the New York City-based company has sold an 87% stake in the development for $226.2 million, local industry sources tell GlobeSt.com.

The building addresses are 1184, 1194, and 1220 N. Mathilda Ave. The complex is located near the confluence of US Highway 101 and State Highway 237. Previously known as Mathilda Business Center, the complex is 100% occupied by publicly held Juniper Networks under three leases that have 3% annual bumps and expire in 2012, 2013 and 2014.

The $615-per-sf purchase price equates to a year-one capitalization rate of 6.5%. There were multiple bidders at or above the $600-per-sf mark, according to the source, who says the site could potentially hold another 150,000 sf of office space.

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