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CUPERTINO, CA-Deutsche Bank’s Rreef Alternative Investments and Bay Area developer Snell & Co has acquired Torre Plaza, a vacant 91,288 sf office building here, for $29.15 million ($319.31 per sf) plus taxes and commissions, according to county records. The deal closed around the start of the month; GlobeSt.com had been awaiting confirmation of the sale price before reporting the deal.

The three-story A-/B+ building sits on Torre Avenue at its intersection with Rodrigues Avenue; the street address is 10201 Torre Ave. The building’s butterfly design allows tenants twice the amount of exterior glass and natural light. Previous tenants have included Symantec and Apple.

While some surrounding submarkets suffer from double-digit vacancy rates, overall office vacancy in the 3.7 million-sf Cupertino market is approximately 8%. Direct vacancy was 3.4% at the end of June while another 4.7% was available on a sublease basis, according to Cornish & Carey Commercial, which has the leasing assignment for the building.

Snell & Co partner Peter Pomeroy declined to discuss the sale price, citing a confidentiality agreement, but says Cupertino is one of the Bay Area’s top markets thanks to strong and steady demand fueled by growth-oriented companies with profitable business models.

The capital improvement plan for the property includes renovating the lobby; creating a rear outside courtyard for tenants to meet and collaborate; improving the landscaping and all common areas; and re-designing a large roof top deck, which offers tenants views of the Santa Cruz mountains.

With regard to leasing prospects, Rreef managing director Jim Carbone says they are good because there are “few to no availabilities” for businesses looking for at least 15,000 sf of high quality space to lease in Cupertino. The asking lease rate for office space in the building is approximately $3.10 per sf per month [NNN]. Todd Shaffer, Anne Ralston and Tracy Solari with Cornish and Carey have the listing.

“Interest has been strong,” Pomeroy says. “We have a had a number of tours with companies in the 15,000- to 90,000-sf range.

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