Commercial Real Estate Blog

Mozart Development has sold Mathilda Place to JP Morgan  Asset Management. The sales price is reported to be $270 million dollars ($575 psf) and represents a 4.5% cap rate.

The property is a three-building, 472,500 SF office campus sitting on 2.25 acres in the Sunnyvale Town Center. The project was constructed in 2002 and includes 4-levels of underground parking. Tenants include Broadcom, Seagate, and Impac Medical, in addition to a smaller set of tenants which occupy some floors which were converted to multi-tenant floors around 2005. Large portions of the project remained vacant for a few years after construction as the market began its slide in 2001-2002. JP Morgan likely will look to bump rents significantly on the smaller multi-tenant spaces which were leased from 2004-2006 to improve cash flow and bump up the going-in yield.

It is not evident what will happen to the Broadcom space as they will likely be departing Mathilda Place for a TBD corporate campus, likely to be located somewhere within the Golden Triangle.

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