Fujitsu Campus Offers Rare Repositioning Opportunity
A six-building office and R&D campus totaling 313,740 square feet, the Fujitsu Campus, has been sold for $104 million, and offers a rare repositioning opportunity as Fujitsu phases out of the campus next year.
SUNNYVALE, CA—Serving as Fujitsu’s headquarters since completion in 1974, the Fujitsu Campus, a six-building office and R&D campus totaling 313,740 square feet, has been sold for $104 million. The seller was WJFS and the buyer was Lane Partners.
The property offers a rare repositioning opportunity as Fujitsu phases out of the campus and relocates to a self-owned facility at 350 Cobalt Way. Fujitsu will be vacating the campus in the latter half of 2021, GlobeSt.com learns.
JLL’s capital markets team members representing the seller included Will Connors, Daniel Renz, Michael Manas, Bart Lammersen, Kyle Caldwell and Toss Vallentine. The JLL debt team led by Jordan Angel is working with the sponsor to secure acquisition financing on the asset. JLL also procured the buyer.
“The redevelopment potential of this campus is unmatched in the immediate area,” Connors said. “Silicon Valley continues to see economic growth fueled by consumer appetite for social and mobile products as well as cloud-based services, which translates to a positive outlook for the area with projected GDP growth in Silicon Valley expected to reach over 10% in 2021.”
The site consists of one- and two-story buildings at 1230, 1240, 1250, 1260, 1270 and 1280 East Arques Ave. Positioned on 26.27 acres, the campus is immediately adjacent to the Central Expressway and near US-101 and the Lawrence Caltrain Station. Additionally, the property is near to the Lawrence Station Area Plan, which encompasses 629 acres of development to include thousands of new housing units, retail amenities and outdoor recreational areas.
“This site is in very close proximity to the Lawrence Station Area Plan,” Lammersen tells GlobeSt.com. “By itself, it is an amazing site with the ability to leverage the existing R&D flex buildings on site and/or add additional square footage as the site has not reached its maximum site capacity.”
While the resiliency and optimism surrounding the tech sector has minimized occupancy losses through the year, much is still up in the air regarding how remote work will be handled in the future. This uncertain environment has halted major expansion efforts and leasing activity as companies recalibrate real estate plans post-COVID, according to JLL’s third-quarter office report.
Completions of pre-leased projects will buoy absorption, but the lack of leasing activity could temper growth. A remaining 1.4 million square feet of speculative office space is scheduled for completion by the end of this year and 2.6 million square feet by the end of 2021. It is unclear what will happen to leasing velocity upon re-opening and how much this injection of space will impact market dynamics, says JLL.