SUNNYVALE – A leading Bay Area real estate company has purchased a modern office building in Sunnyvale that is leased to Nokia in a deal that shows investors are betting on a solid future for Silicon Valley.
GI Partners, acting through a subsidiary, purchased a recently completed office building at 520 Almanor Ave. in the Peery Park neighborhood of Sunnyvale for $ 254 million, according to public documents filed with the Santa Clara County Recorder’s Office on July 20.
The building totals 230,000 square feet and was developed by Lane Partners.
The purchase of the property was accomplished through a deed of concession and assignment of a land lease for the land beneath the sparkling new office building.
GI TC Peery Park is the subsidiary of GI Partners that purchased the building and secured the ground lease, according to county records.
“The deal shows people believe the office market will be back in Silicon Valley,” said David Sandlin, executive vice president of Colliers, a commercial real estate company.
The deal is about $ 1,100 per square foot for the building, which is a healthy market price in Silicon Valley.
The entire building is leased to Nokia, according to the Lane Partners webpage.
Peery Park has become a hotbed of activity in recent times.
In May, Apple leased 701,000 square feet at Pathline Park, a large tech campus Irvine Co. is developing in Sunnyvale.
Irvine also leased space at Pathline Park from technology companies Proofpoint and Synopsys.
Synopsys leases approximately 350,000 square feet in three buildings to Pathline and Proofpoint leases approximately 242,000 square feet in two buildings.
The office building Nokia leased on Almanor Avenue also includes about 7,000 square feet of outdoor patio space, according to the Lane Partners online site.
Approximately 4,000 square feet of space for a cafeteria or retail site is also available on the ground floor of the building.
“This transaction underscores the strength of the office market in Silicon Valley,” said Sandlin.
