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SAN FRANCISCO-Shorenstein Properties LLC has acquired a$40-million stake in a portion of the construction financing forthe Moffett Towers, a class A office development in Sunnyvale. TheShorenstein stake is a junior interest in a $66.8-million B-noteincluded in a $216.8-million construction financing packageprovided earlier this year to Jay Paul Co. for construction of theMoffett Towers project.

Douglas Shorenstein, chairman and CEO of Shorenstein Properties,says that the company acquired the interest in the financingbecause it was attracted by the "strong risk-adjusted return on afinancing instrument backed by a sponsor with an excellent trackrecord for developing quality properties in Silicon Valley." Headds that the Silicon Valley suffer from "a dearth of large blocksof class A space," amid growing demand, particularly from thetechnology sector.