(Mark Your Calendars: RealShare REAL ESTATE 2012, March 22nd in Los Angeles).
SUNNYVALE, CA-Sunnyvale City Manager Gary Luebbers revealed that Apple will join the ranks of high-tech businesses located in downtown Sunnyvale. Apple will occupy the new 156,000 square-foot Town Center Office building at Mathilda and McKinley avenues.
Although principles in the deals were not able to talk to GlobeSt.com at this time, in-market expert Stephen Duffy, a managing director at Moss Adams Capital LLC, tells GlobeSt.com that “The Apple lease announcement is a clear sign that this asset is starting to perform to the original vision of the development.” He adds that “The hiccup in the journey was the leverage which is why today's ownership is different. Good real estate can endure but high leverage requires timing.”
Although GlobeSt.com could not get any further lease terms by deadline, Luebbers says in a prepared statement that “Our entire community will benefit as we see yet another large gain in the Town Center redevelopment project.” Just a year ago, Nokia merged several of their Bay Area offices into a new regional office. They selected a new office building on Mathilda and Washington avenues, next door to what will now become Apple’s building. Nokia brought in some 500 employees to staff their Town Center site, and Apple is expected to add 400 or so of their own, he explains.
“The gain in the daytime business presence of several hundred more people will provide
a boost to the City’s economy,” Luebbers adds. “They will inject more business into
downtown and Murphy Avenue restaurants and shops.”
While the Sunnyvale Town Center redevelopment project has run into challenges as a result of the economic downturn, according to Luebber, the continued operation of Macy’s, the addition of a new Target store two years ago, the 2010 leasing of an entire 156,000 square-foot office building, and the Apple announcement, “are all signs of gaining forward momentum in the completion of the center,” he says.
Luebbers expects Apple will occupy the new office space in approximately the third quarter of 2012. Sunnyvale Town Center broke ground in 2007 by a private development team in conjunction with the City of Sunnyvale, but was subsequently foreclosed and taken back by a bank ownership group. The 36-acre project now over half complete was designed to create a traditional downtown and vibrant pedestrian-friendly place for shopping, working, living and entertainment, including 300 housing units, 315,000 square feet of office space, a 200-room hotel and 1 million square feet of retail, including a movie theater.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
