TMG Adds The Quad to its Owner Roll
TMG Partners was attracted to The Quad because of its stable long-term cash flow, the Santa Clara location, the need to provide office space for many size requirements and the existing suite of amenities.
SAN CLARA, CA—The Quad is a seven-building 410,106-square-foot office campus consisting of two-story buildings built in 1982, which was recently renovated by JP Morgan. The campus is located at the intersection of Tasman Drive and Bunker Hill Lane. TMG Partners recently purchased The Quad for an undisclosed purchase price.
Occupying 50% of the project on a long-term lease, anchor tenant Silicon Valley Bank maintains headquarters for its global commerce bank operations at the property. Other tenants include GoDaddy, Perspecta and a recently executed 23,000-square-foot lease with Knowles, bringing occupancy at the property to 73%.
“TMG Partners was attracted to this property because of its stable long-term cash flow, the Santa Clara location, our understanding of the need to provide office space for the many different size requirements of today’s tenants as well as the existing suite of amenities,” said Ben Kochalski, regional partner with TMG Partners.
Kochalski says the firm has confidence The Quad will attract more businesses looking to headquarter in this location. The property is located three blocks from Levi’s Stadium, across from Kylli’s Mission Point and four blocks from a 9.2-million-square-foot mega-community under development. It is adjacent to VTA Light Rail station and accessible to Interstate 101 and CA-237.
“The Quad is a newly renovated office property gem in the highly sought-after Santa Clara submarket,” Kochalski tells GlobeSt.com. “The asset currently yields very stable long-term cash flow and we forecast the opportunity to track upwards as we add new improvements and amenities, further enhancing the indoor/outdoor tenant experience.”
Floorplates range from 19,000 to 50,000 square feet, accommodating a large range of users. Existing upgrades include an expansive outdoor courtyard, coffee shop, bocce ball and food truck courts, fitness center, market-ready spaces, modernized entryways and window lines. The site is also entitled for an additional 150,000 square feet, providing the opportunity for a build-to-suit development for an interested tenant.
In the overall Silicon Valley CRE market, Google had an impactful 2019. In addition to having the top lease and sale of the year for Silicon Valley, it also announced a development plan for the Diridon station transit village in San Jose. Initial announcements proposed 6.5 million square feet of office space and 3,000 to 5,000 homes. This is in addition to 1.76 million square feet of proposed office space in Sunnyvale and 803,000 square feet in Mountain View, according to a Kidder Mathews report.