Stanford University Sells Office Asset for $123M
- Dec 08, 2020
Stanford University has finalized the $123 million sale of a newly constructed building in its Stanford Research Park in Palo Alto, Calif. Harrison Street acquired the 85,420-square-foot R&D/office property. Capital One provided a $69.5 million acquisition loan which matures in 2025, according to Santa Clara County records.
The new development is located at 3380 Coyote Hill Road. The 7-acre land parcel is subject to a 51-year ground lease held by Stanford University. The recorded contract does not include clauses for the renewal or extension of the lease, nor for the purchase of the land.
Devcon Construction serves as the general contractor for the STUDIOS Architecture-designed project. The property’s core and shell were recently completed, according to CommercialEdge data. In 2019, VMware signed a full-building lease at the property, which is across the street from its corporate headquarters. Additionally, the site is within 2 miles of Interstate 280 and 19 miles northwest of downtown San Jose.
In November, a joint venture between Harrison Street and The Sanders Trust sold an 11-property portfolio for $240 million. Lincoln Property Co. acquired the medical office buildings and inpatient rehabilitation facilities.