Receiver Appointed for Sunnyvale Town Center

SUNNYVALE, CA-Court-appointed receivers are now in control of Sunnyvale Town Center, a 36-acre downtown redevelopment project that stalled 40% complete amid the recession—except for a big-box Target store that is nearing completion. The project was to include 900,000 square feet of retail and restaurant space, 315,000 square feet of office space, 292 condos and a 200-room hotel. The receivership is part of foreclosure proceedings initiated by lender Wachovia after the development partnership–Sand Hill Property Co. of San Mateo and equity partner Rreef–defaulted on a $100-million loan.

The receivers are Jerry Hunt and Quattro Realty Group, a new asset advisory firm led by Brad Blake; Hunt and Blake also own the development firm Blake Hunt Ventures. Wachovia and the receiver are being advised by Federal Realty Investment Trust and Wilson Meany Sullivan, respectively the developers of Santana Row retail development and The 88 condo development, both in San Jose.

The City of Sunnyvale, which OK’d the sale of the property to the Sand Hill-Rreef JV a previous developer failed to make it happen, expressed relief with the appointment of a receiver for the property. City Manager Gary Luebbers said says the global economic meltdown was occurring right about the time the Sand Hill-Rreef JV sought a second round of financing to complete the project. The developer was unable to secure the additional financing, and the project halted, he says.