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Tilt-Ups Coming Down for Class A Office

SUNNYVALE, CA-A single-story R&D campus built in the 1980s is being razed in favor of four- and five-story class A office buildings.

By Brian K. Miller | Updated on August 19, 2007

SUNNYVALE, CA-A 20-year-old, single-story R&D campus here is methodically being torn down and replaced with four- and five-story class A office buildings. The first phase of Java Metro Center, a five-story, 150,000-sf building and a four-level parking garage, is underway. Completion is slated for this time next year.

The developers, a partnership of SCM Properties, who contributed the land, and Exterra Realty Partners, who had the idea, is capitalizing on the city’s plan for increased density around the VTA light rail line and, hopefully, increased demand for mid-rise class A office in a region dominated by low-rise industrial-style buildings built out for office and research uses.

Goldman Sachs is putting up all of the $60 million it will cost to complete the project. “We tore down one of the three existing buildings, leaving two, one leased and one not,” Exterra principal Mike Parker, formerly a longtime Koll Development partner, tells GlobeSt.com. “What we were able to do was contribute the property free-and-clear and borrow 100% of the construction cost as well as the cost to carry the empty building through lease-up.”

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