Tristar Capital Lands $232M in Financing for Sunnyvale Campus
- Feb 23, 2017
Sunnyvale, Calif.—Natixis has provided an approximately $232.5 million five-year, fixed-rate loan to Tristar Capital for the acquisition of Crossroads III, an office property in Sunnyvale, Calif.
The financing was arranged by Richard Horowitz of Cooper-Horowitz in New York.
According to a Tristar Capital press release, the properties were acquired from Rockwood Capital for a price tag of $290.7 million.
The three, three-story freestanding office buildings are located at 410, 420 and 430 N. Mary Ave., and offer a total net rentable area of 349,758 square feet. Originally built between 1990 and 1992, the properties are situated on a 14.82-acre site and are 100 percent net leased to Apple Inc.
Greg Murphy, head of Natixis Real Estate Finance Americas, told Commercial Property Executive that the commitment by Apple to lease all three buildings and invest in the fit out of their space was an important attribute of the property.
Each of the buildings comprises two wings around one central core, with two courtyards with fountains that are located between the buildings. There are 767 surface parking spaces while another 404 vehicles can be accommodated in a two-level freestanding parking garage with access provided by keycard controlled gates, for a total of 1,171 parking spaces for the three buildings.
According to Murphy, Natixis looks for opportunities to lend on high-quality properties with experienced operators and the stable rental stream from Apple gave the company the confidence to make this fixed-rate loan.
The direct office vacancy in the Sunnyvale/Cupertino submarket at the end of 2016 was 4.4 percent, which Murphy said gave the company further comfort about the strength of this office market.
The property is located on the northwestern side of Sunnyvale in the heart of Silicon Valley, just east of the Mountain View city border. The Santa Clara Light Rail station is located about one-half mile north of the property in Moffett Park, adjacent to the Technology Corners development along W. Moffett Place Drive. The San Jose International Airport is situated less than 10 miles away.
“Because of its central location in Silicon Valley and its convenience in transportation (next to Highway 101), Sunnyvale has been a magnet to some of the nation’s largest tech companies,” he said. “Also, large defense companies have a dominant presence here.”
Image courtesy of Yardi Matrix