SUNNYVALE, CA—The second phase is going forward in the development of Jay Paul's Moffett Place campus, a 1.9 million-square-foot office campus which will consist of six office buildings, a health club and related common area improvements on 55 acres when completed. The entire campus is leased to Google, which took initial occupancy in the fourth quarter of last year.
Manatt Phelps & Phillips LLP closed an aggregate $906.5 million financing transaction for the phase on behalf of Jay Paul Company. The phased nature of the development presented particular challenges in the context of the financing. The largest loan comprises a single asset CMBS securitization, and as such was closely scrutinized by the rating agencies, and origination and securitization counsel.
The financings consist of a $501 million loan by Barclays and $149 million mezzanine loan by a Korean sovereign wealth fund, each to provide long term financing on three completed buildings, and a $256 million construction loan by Wells Fargo Bank to provide construction financing for a fourth building and land financing for the remaining undeveloped portion of the project.
Three buildings are completed with an additional three to be built for a total of six buildings at the conclusion of the project. Construction is commencing now on the next two buildings and the final building will follow thereafter.
Manatt partner Clay Gantz led a deal team that included associate Grace Yang and counsel Scott Johnson, with the assistance of partners Carl Grumer, Hal Reichwald, David Herbst and Jeff Mannisto.
Gantz tells Globest.com: "Jay Paul's projects represent the leading edge of design, energy efficiency and amenities, and we are very proud to play a part in helping the team realize this vision."
Moffett Place is situated alongside Silicon Valley's Highway 237 corridor near Highway 101. Amenities include an onsite cafe and 50,000-square-foot fitness center including basketball gym, workout areas, fitness classes, pool and spa, outdoor training zone and personal training. The LEED Gold-certified office buildings incorporate strategies for sustainability and energy efficiency. Multiple commuting pathways are created with generous structured parking and alternative transportation readily accessible in the form of light-rail stations and convenient public transportation.
As previously reported, the first phase was funded earlier this year.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
