August 21, 2008
Snell & Co. has acquired a +/- 90,000 square feet office building from Symantec, The three-story building is located at the corner of Torre Avenue and Rodrigues Ave in Cupertino. The building was delivered vacant.
We heard about this sale a few months ago when Snell & Co. tied the site up and was on the hunt for the financing and/or joint-venture partner it needed to conclude the deal. The word is that the sales price was right around $330 per square foot or $30M.
The building is a Class B+ asset, and can be fairly easily demised down into chunks of roughly 15K SF. Market rents for this quality of space are in the $2.50 NNN range, with an allowance of $15 psf. The new owners plan on upgrading the common areas, lobby, exterior, and elevator cabs. This building should clean up nicely, but the ceiling heights are a little low (8′-8’5″) to be considered quality Class A space and appeal to everyone. Cupertino is a historically strong market and currently benefits from single digit vacancy rates due to Apple’s voracious appetite for space.
Update: Another broker has emailed us and indicated that asking rents are $3.10 NNN at this project, and that they will demise the spaces down to about 5,000 SF. $3.10 is a fairly strong number for this asset, we’ll see if they can achieve that.
- A Guide to Office Building Classifications; Class A, Class B, Class C
- RREEF and Snell Default on Torre Plaza in Cupertino
- Symantec Ditching Cupertino?
- The Incredible Growing Office Building
- Prudential Takes Back Torre Plaza