Date: Friday, December 4th, 2015, 09:04
Category: Finance, News
The process of Apple pretty much buying out the entire South Bay real estate market continues.
Today, it was revealed that the Jay Paul Co. is in advanced discussions to acquire Landbank Investments LLC’s massive “Central & Wolfe” development site in Sunnyvale, where Apple Inc. has leased a huge, Space Age-style office complex planned to be built there, according to industry sources.
Three sources outside the deal have stated that San Francisco-based Jay Paul has been picked as the buyer. The deal isn’t complete, and it’s unclear whether or not the transaction has gone nonrefundable. Scott Jacobs, CEO of Landbank, declined to comment on Wednesday. Jay Paul Co.’s chief investment officer, Matt Lituchy, declined to comment Thursday.
The design, currently being collaborated on by Sandbank Investments and architecture firm HOK features three, four-story buildings over two levels of parking connected by an undulating skin. The effect is a cloverleaf, or flower-petal-like design that draws comparisons to Apple Campus 2 but is unique in its own right.
But state records show a corporate entity, “Central Wolfe Management Inc.,” was registered on November 25. That entity is linked to Jay Paul’s San Francisco office, records show.
Several sources close to the story have indicated price points, one going as far as to say that the guidance to prospective buyers was in the neighborhood of $200 million for the land. The price could have changed as the competition for the asset got underway, and it’s still possible a deal could fall through.
If finalized, the deal could provide a 777,000 square-foot campus
As it turns out, the site was in the right place at the right time. Apple on Sept. 17 signed a lease for the entire campus, agreeing to a 12-year, six-month term with two seven-year extension options, according to a memorandum of lease filed with Santa Clara County on Nov. 6. Apple had a right of first negotiation to purchase the project itself, but the Mac maker passed, and the offering went out to a broader group of buyers. The sale was being handled by the San Jose office of Eastdil Secured, where brokers didn’t return a request for comment earlier this week.
The campus would also totally reshape its Sunnyvale neighborhood, which is characterized by single-story industrial and R&D buildings. While Apple has been snapping up existing buildings all over the neighborhood, the massive new campus could become a new icon for the region.
Stay tuned for additional details as they become available.
Via the Silicon Valley Business Journal