Large Block Sells in Silicon Valley, Land of Scant Space
One of the few remaining headquarters facilities available in Silicon Valley has been acquired by a joint venture between Embarcadero Capital Partners and PCCP at a purchase price of about $70 million.
MILPITAS, CA—One of the few remaining headquarters facilities available in Silicon Valley has been acquired at a purchase price in the neighborhood of $70 million, GlobeSt.com learns. A joint venture between Embarcadero Capital Partners and PCCP LLC acquired the recently renamed Park Point campus from Los Angeles-based Hudson Pacific Properties with plans to transform the campus into creative space.
“We have a long history of creating transformative corporate headquarters along the 237 Corridor,” says Carol Donnelly, Embarcadero Capital principal. “We are thrilled to start working on Park Point with our partner PCCP and the teams from HOK and Newmark. We believe this campus is one of the best large blocks of space immediately available in Silicon Valley at an incredibly competitive price point.”
The 30-acre site featuring three office/R&D buildings totaling approximately 472,000 square feet is located at 115-155 North McCarthy Blvd. Located at the intersection of Highway 237 and Interstate 880, Park Point occupies a strategic location for employers looking to reduce commutes times for employees traveling from all directions of Silicon Valley. Given the dispersion of talent in the Bay Area, Park Point offers one of the few remaining macro-level locations at Silicon Valley’s end of the Bay.
Design, architecture, engineering and planning firm HOK has been engaged to lead the project’s revitalization as a creative workplace. Jeff Arrillaga, Shawn Kellenberger and Michael Saign of Newmark Knight Frank’s Silicon Valley office have been hired as the exclusive listing agents of Park Point.
“Upon completion Park Point will offer an optimized, highly efficient, flexible workplace that will promote productivity with best in class indoor/outdoor usable amenity space,” Saign tells GlobeSt.com. “This campus will be a key recruiting and retention tool for occupiers who want to create an engaging environment their employees will love coming to work within.”
More than 50 food, lodging, hospitality and retail amenities are located across the street from Park Point. The campus also features direct access to the Guadalupe hiking trail and will have shuttle service to the new Milpitas BART station.
Following a slow start to the year in the first quarter of 2019, office activity has once again started to pick up in the Silicon Valley, according to a report by Newmark Knight Frank. Due to a number of large deals being signed and very few new large spaces coming to market to counter that, the market posted 461,828 square feet of positive net absorption.
As a result, availability dropped 1.1 percentage points to 8.9% overall for the market. Overall asking rents dropped $0.04 per square foot to $4.21 per square foot, as multiple large and highly priced spaces were leased in Santa Clara, Sunnyvale and Mountain View.