SANTA CLARA, CA—McCarthy Cook & Co. has acquired 3535 Garrett Drive, a 120,000 square-foot office building located in Santa Clara.

McCarthy Cook acquired the property in a partnership with Rialto Capital Management, LLC, a diversified real estate investment and management company that is wholly-owned by the Lennar Corporation. This acquisition marks McCarthy Cook's first joint venture with Rialto Capital.

3535 Garrett Drive is a 2-story building that was built in 1984 on 5.7 acres. The building also includes a recently-constructed fitness center as well as a 3.7 per 1,000 rentable square feet parking ratio.

The seller was Applied Materials, a global leader in providing innovative equipment, services and software to enable the manufacture of advanced semiconductor, flat panel display and solar photovoltaic products. It was represented in the sale transaction by Steve Prehm of Colliers International while McCarthy Cook and Rialto Capital represented themselves.

At close, Applied Materials will commence a short-term leaseback of approximately 11% of the building, providing the new owners with the opportunity to reposition 3535 Garrett into one of the premier, amenity-rich office projects in Santa Clara. The business plan will include: the redevelopment of all common areas and lobbies; a substantial enhancement of the building's exterior and window line; the creation of new project amenities such as a tenant lounge, indoor and outdoor collaboration spaces and a branded bicycle program. In addition interior tenant space will be converted to a class A, market ready standard.

“3535 Garrett will provide tenants with an exciting opportunity to occupy a completely repositioned, office project located next door to leading technology tenants such as Ericsson, Akamai, Abbott Labs, and Lenovo and a short walk to over 125,000 square feet of retail amenities,” said Tom McCarthy, co-president of McCarthy Cook. “The project has an efficient, rectangular floor-plate, above-standard parking ratio, and a state-of-the-art HVAC system that provides cost savings and flexibility for tenants. Once the renovation is completed, the project will offer four sides of floor-to-ceiling glass on both floors and an unmatched environment for tenants in Santa Clara.”

McCarthy Cook has hired Kelly Simcox of Studio G Architects and Jon Pershing of OPI Builders to assist with the repositioning. Leasing and marketing will be led locally by Gregory Davies and Steve Horton of Cassidy Turley under the leadership of McCarthy Cook.

Mike Farley, director of Rialto Capital, observed, “The continued growth of the Silicon Valley technology sector and further tightening of the adjacent submarkets of Mountain View, Palo Alto and Sunnyvale makes this investment particularly compelling...The project has exceptional physical qualities from which to draw upon as we transform it into a class A creative office environment set within an amenity-rich neighborhood.”