Home News Huge Sunnyvale tech campus is bought as Bay Area office market wilts

Huge Sunnyvale tech campus is bought as Bay Area office market wilts

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SUNNYVALE — A huge Sunnyvale tech campus has been bought for roughly $100 million in a deal that shows interest in Silicon Valley real estate — yet also underscores the Bay Area office market’s feeble state.

The seven-building tech complex in Sunnyvale was bought for $100.8 million by an affiliate linked to Tidewater Capital, according to documents filed on June 3 with the Santa Clara County Recorder’s Office.

Sunnyvale tech campus consisting of seven office buildings near the corner of De Guigne Drive and Stewart Drive, shown with the outline. Boundaries are approximate. (Google Maps)
Sunnyvale tech campus consisting of seven office buildings near the corner of De Guigne Drive and Stewart Drive, shown within the outline. Boundaries are approximate. (Google Maps)

To be sure, the property deal shows that veteran real estate firms such as Tidewater Capital continue to show interest in commercial real estate sites in Silicon Valley.

Yet the purchase also is a reminder that the Bay Area office market totters at the edge of an economic abyss of plunging values, faltering rents, rising foreclosures, sky-high interest rates, and tough financing markets.

490 De Guigne Drive, an office and research building that is part of a seven-building tech campus in Sunnyvale.(Google Maps)
490 De Guigne Drive, an office and research building that is part of a seven-building tech campus in Sunnyvale. (Google Maps)

In 2019, the seven-building campus was bought for $188 million. The office and research complex for the complex totals 431,100 square feet.

At the time, the property’s price was seen as evidence of the bustling state of Silicon Valley’s office market.

Tech companies were expanding rapidly and seemed to be hiring new employees as fast as recruits could fill out applications.

Silicon Valley’s employment boom unleashed a ravenous appetite for office space to accommodate the fast-growing tech workforce.

Then the arrival of the coronavirus spawned economic afflictions and business lockdowns starting in 2020 that emptied out office buildings.



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