SUNNYVALE, CA—Three words, walkable mixed use, seem to be in the lexicon of most real estate developers these days. With that theme in mind, CityLine Sunnyvale has signed a lease with AMC Theaters for a multi-screen theater. The theater will occupy the same building as a previously announced Whole Foods Market, with both businesses serving to anchor Sunnyvale's downtown district as a pedestrian-friendly mixed-use neighborhood.

The new theater is planned as a 12-screen multiplex with Dolby Cinema and IMAX upgrades to two screens, and will include reserved seating and a full-service bar. The bar area will feature dedicated seating and a balcony overlooking the redesigned Redwood Square.

A new two-story building on the corner of Murphy and McKinley Avenues will house the 52,000-square-foot AMC Theaters on the second floor, with the 52,000-square-foot Whole Foods Market on the street level. CityLine Sunnyvale will extend Murphy Avenue as an area with new residences, shopping, entertainment options and office space planned across 36 acres.

“This is a major step in fostering a thriving and dynamic downtown that supports a mix of strong, locally oriented businesses,” says Deke Hunter, president of Hunter Storm.

The decision to name the project CityLine Sunnyvale was based on the concept that this area will connect the dots between work, life, entertainment and leisure with adjacent access to Caltrain. With residential, retail and office space all in one convenient location, CityLine Sunnyvale will blend the boundaries between working and living in Sunnyvale.

The project is currently under design with construction activities to start in the coming months and a grand opening planned for summer of 2019. CityLine Sunnyvale is being developed by STC Venture LLC, a joint venture between affiliates of Hunter Storm and Sares Regis Group of Northern California.

“With AMC Theaters and Whole Foods in place, we now have the foundation to redevelop downtown Sunnyvale into a lively and walkable community gathering place,” Hunter tells GlobeSt.com. “These two businesses will serve as the cornerstone for CityLine Sunnyvale, attracting to the neighborhood other retail and restaurant tenants that will help shape the downtown area into the experiential shopping district we envision.”

STC Venture recently requested a downtown specific plan amendment proposing to include the addition of a maximum of both 350,000 square feet of office space and up to 650 residential units located above ground-floor retail along McKinley Avenue and a newly extended Murphy Avenue. If approved, the residential community would surround a new active public plaza, bounded by diverse retail which will support downtown Sunnyvale. The plaza will incorporate the existing heritage redwood trees, and add green spaces, picnic areas, play areas and seating which can flexibly be used for both private and public functions. As proposed, the plaza would be a community gathering point for residents, workers and visitors.

“With this milestone, we are now focused on working with the city and community to complete the downtown,” says David N.P. Hopkins, senior vice president at Sares Regis. “We envision a vibrant, walkable neighborhood which integrates new housing, shops and jobs with existing infrastructure such as Caltrain and the charm of the existing Murphy Avenue retail. Once completed, the downtown will serve as a new, smart, evolving and energetic center for Sunnyvale.”

Public improvements totaling $20 million are currently under construction for CityLine Sunnyvale, including the temporary reopening of Redwood Square for public use, the extension of Murphy Avenue to connect with McKinley Avenue, the addition of landscaping and street trees, the installation of new traffic signals, and the construction of landscaped medians. Target and Macy's department stores continue to serve CityLine Sunnyvale, with parking for customers located in two existing garage structures and a surface lot east of Macys.

CityLine was acquired by STC Venture in late 2015. Phase one of construction is currently underway and includes plans to complete 198 one-, two- and three-bedroom apartments with indoor and outdoor amenities—including 24 affordable homes—along Taaffe Street, as well as 85,000 square feet of retail space opening in late 2018.

In addition, STC Venture has submitted conceptual plans for an additional 94 residential units along Iowa Street, the entitlements for which were approved in 2007. These include 75 one- and two-bedroom apartments and 19 three-bedroom townhomes.

James Chung of Cushman & Wakefield's San Jose office represented CityLine Sunnyvale on the AMC lease while Craig Killman from JLL's San Diego office represented AMC. Gary A. Glick of Cox, Castle & Nicholson's Los Angeles office provided legal counsel for CityLine Sunnyvale on the lease while Pete DiGiovanni of Lewis Rice's Kansas City, MO office represented AMC.

Whole Foods Market

“This is a major step in fostering a thriving and dynamic downtown that supports a mix of strong, locally oriented businesses,” says Deke Hunter, president of Hunter Storm.

Instant Insights /

Two Anchors Solidify Downtown Core

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