December 21, 2009
Back in the summer Wrightwood Capital foreclosed on Bordeaux Centre, the 2-building ~124,000 SF newly constructed project in Moffett Park. Since taking it back, they’ve leased one of the buildings to Cortina Systems. Last week we blogged about the Moffett Towers deal signed with Rambus. Since then, we’ve received some comments on the post, as well as some “hate” mail questioning our intentions and blog post. Well, we had no interest in that deal or any other deal at Moffett Towers, we’re just providing some commentary and going a bit beyond the deal. If you don’t happen to agree, then that’s perfectly acceptable. We do however appreciate the comments made on the post and discussion between readers, so thanks for that.
But to provide some contrast, there is the deal that was signed recently by Cortina Systems for one of the buildings at Bordeaux Centre. We don’t have all the details of this deal, but rough deal terms were:
- $1.55 NNN
- 4% annual escalations
- $50-60 TI’s on shell (cold)
We don’t know if/how much free rent was provided, but based on this math, had Cortina gone to a 10-year deal, and had better credit (a la Rambus), it may have very well been able to get a full turnkey TI package from the landlord. Obviously Bordeaux Centre is not Moffett Towers and doesn’t have the freeway signage or some of the other amenities, but the disparity in pricing is pretty significant.
- Bordeaux Centre Taken By Lender
- Harmonic Leases 188K SF in North San Jose
- Blue Coat Systems Signs 233K Square Feet Lease in Sunnyvale
- Signs of Life at Moffett Towers in Sunnyvale
- Moffett Towers Lands Rambus For 125K SF