SUNNYVALE, CA—The extension of Murphy Avenue connecting the heritage downtown district to McKinley Avenue is now a reality, representing a major step in the multi-phase CityLine Sunnyvale downtown redevelopment project. The extension promises to play a large part in enlivening downtown as a pedestrian-oriented mixed-use district featuring new residences, shopping, entertainment options and office space planned across 36 acres. STC Venture LLC, a joint venture between Sares Regis Group of Northern California and Hunter Properties, completed the project.

The street extension will connect the historic Murphy Avenue block to a new two-story building currently under construction at the corner of Murphy and McKinley Avenues, housing a Whole Foods Market and an AMC Theaters. Scheduled to open in 2019, the 52,000-square-foot theater and 52,000-square-foot grocery store will anchor the downtown district, attracting additional retail and restaurant tenants to the area.

The extension includes additional parking for shoppers and visitors to downtown, as well as defined pedestrian walkways that have been missing for years. The parcel just east of the entrance to Macy's is being converted to temporary handicap-accessible parking, the 50-space parking lot adjacent to Redwood Square has been reopened, and the surface lot east of Murphy Avenue has also been improved with new asphalt and striping.

“The opening of the Murphy Avenue extension will improve area circulation and is an important step in transforming downtown Sunnyvale into a thriving and dynamic area,” says Deke Hunter, president of Hunter Storm. “The additional parking recently made available will also make it easier for shoppers and visitors to continue to frequent downtown businesses while enhancing the pedestrian experience on the street.”

STC Venture recently acquired the nearby 177,000-square-foot Macy's building, which will allow for more flexibility in developing a well-coordinated plan for the future of Murphy Avenue and downtown Sunnyvale.

“We're excited to celebrate this vital step in the transformation of downtown Sunnyvale into a more connected pedestrian-friendly area,” David N.P. Hopkins, chief operating officer at Sares Regis Group of Northern California, tells GlobeSt.com. “This new road extension is the beginning of many milestones to come, including the delivery of nearly 200 new residences this fall.”

The Flats at CityLine Sunnyvale, a 198-residence, mixed-use development in three buildings is nearing completion along Washington and McKinley Avenues. The Flats are scheduled to be delivered as the first completed homes within the CityLine Sunnyvale project. The community will also provide 25 residences designated as affordable.

STC Venture LLC is also completing the design review process with the city to build an additional 94 residential units along Iowa Street, the entitlements for which were approved in 2007. These include 75 one- and two-bedroom apartments, along with 19 three-bedroom townhomes.

Public improvements totaling $20 million are currently under construction for CityLine Sunnyvale, including the addition of landscaping and 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.

“Opening the Murphy Avenue extension is another exciting step toward expanding and connecting Sunnyvale's vibrant downtown,” says mayor Glenn Hendricks. “We are delighted with the progress STC is making to bring the full vision of Sunnyvale's downtown to completion. We will see a transformation of this area in the coming years.”

STC Venture, along with two other development firms, recently received approval to initiate a downtown specific plan amendment proposing to build additional residential units and office space within the downtown specific plan area. If approved, the amended plan may include a main street along the new Murphy Avenue as well as a new active public plaza bounded by retail that will enhance and support downtown. The plaza will incorporate existing heritage redwood trees and add public open spaces. As envisioned, the plaza would be a community gathering point for residents, workers and visitors.

The leasing office for The Flats will be located at the corner of Washington and Taaffe Avenues, scheduled to open in September 2018. And, James Chung of Cushman & Wakefield's San Jose office is coordinating retail leasing for CityLine Sunnyvale.

Hunter Storm, the development arm of Hunter Properties, is a development firm with an emphasis on ground-up construction, repositioning of assets and value-add improvements. All of its major projects are located in the Bay Area. Recent projects include Crossing 900 in downtown Redwood City, @First in San Jose which is a mixed-use project of more than 1 million square feet, and Bass Pro at Almaden Ranch and Village Oaks in South San Jose. Current developments also include Coleman Highline, a transit-oriented development of more than 1.5 million square feet across from the San Jose International Airport.

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Long-Awaited Road Connector is a Reality

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