156,000-SF Lease Shows that Asset is ‘Starting to Perform’

SUNNYVALE, CA-Sunnyvale City Manager Gary Luebbers revealed that Apple will join the ranks of high-tech businesses located in downtown Sunnyvale. Apple will occupy the new 156,000 square-foot Town Center Office building at Mathilda and McKinley avenues.

Although principles in the deals were not able to talk to GlobeSt.com at this time, in-market expert Stephen Duffy, a managing director at Moss Adams Capital LLC, tells GlobeSt.com that “The Apple lease announcement is a clear sign that this asset is starting to perform to the original vision of the development.”

He adds that “The hiccup in the journey was the leverage which is why today’s ownership is different. Good real estate can endure but high leverage requires timing.”

Although GlobeSt.com could not get any further lease terms by deadline, Luebbers says in a prepared statement that “Our entire community will benefit as we see yet another large gain in the Town Center redevelopment project.”

Just a year ago, Nokia merged several of their Bay Area offices into a new regional office. They selected a new office building on Mathilda and Washington avenues, next door to what will now become Apple’s building.

Nokia brought in some 500 employees to staff their Town Center site, and Apple is expected to add 400 or so of their own, he explains.

“The gain in the daytime business presence of several hundred more people will provide
a boost to the City’s economy,” Luebbers adds. “They will inject more business into
downtown and Murphy Avenue restaurants and shops.”

Read the full article at GlobeSt.com

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Tags: apple, featured, moss adams, redevelopment project, regional office, stephen duffy

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