Commercial Real Estate Blog

The Apple building at 20605 Valley Green Drive in Cupertino, also known as “Valley Green 6″, caught fire on Tuesday night. It’s not yet clear how much damage the building sustained but it was a 3-alarm fire.

It’s been confirmed that the tenant taking Sand Hill Property companies 60K SF Cupertino Landing office development is Apple Computer. We first heard about the brewing deal early last month. The 3-Story, ~60,000 square foot building was the site of the former Any Mountain sportings goods store. The owners at the peak of the market during the late 90’s were rumored to have been offered about $12M for the site but turned it down. After a number of years sitting vacant and for lease, it was finally re-sold to Peter Pau’s Sand Hill Property Company in 2005. The asking rate was $3.50 NNN, and it’s likely the lease was struck somewhere close to that number. TI numbers are unknown, but based on competing new developments, the number is likely to be somewhere in the area of $35-40 psf over shell.

The next largest chunk of space available for Apple to take down is the Blue Coat Systems sublease that will be available shortly. That 105,000 SF space is located just south of the Cupertino Landing project on North De Anza. Blue Coat Systems acquired the site as part of its acquisition of Packeteer. Blue Coat will be consolidating Packeteer into its Sunnyvale facility, which Blue Coat renewed and expanded its lease with Jay Paul on.

The list below represents the top lease transactions which occurred in Silicon Valley during the second quarter of 2008.

We’ve heard that a single tenant is taking down Cupertino Landing, the 3-story, 59,670 square foot office project developed by Sand Hill Property Company. Sand Hill acquired the 1.66 acre parcel back in 2005 and finished the building in the last quarter. The project which is located at 10495 N. De Anza Boulevard in Cupertino features a single 3-story structure with an above-grade structured parking garage. The project’s asking rate was $3.50 NNN.

It’s not clear who has taken down the space or is in discussions, but given the continued prosperity of Apple Computer and the fact that it hasn’t done much with its campus plans on the other side of 280 make it entirely possible that Apple is the tenant.