A pair of investors bought a plot of land set to become a four-story office building in Peery Park, a booming industrial neighborhood in Sunnyvale.
Foster City-based real estate management firm SteelWave and Iowa-based Principal Real Estate Investors purchased the 3.5-acre property for a reported $28 million, according to the Silicon Valley Business Journal. The investor group bought the land from the active Bay Area-based developer Sobrante Properties.
The land—located at 285 Sobrante Way—is already entitled, meaning that it has approval from the city for development. Before the parcel was sold, Sobrante Properties already submitted plans for a four-story office building called Central Station. It appears the new owners don’t want to make any changes.
Part of what makes the office building so attractive to SteelWave and Principal Real Estate Investors is its proximity to the Sunnyvale Caltrain station.
“The easy access to Caltrain and downtown amenities allows a company to significantly extend their reach for high-demand workers, a genuine competitive advantage in these conditions,” Steve Dunn, of SteelWave, told the Business Journal.
Peery Park, one of Sunnyvale’s older industrial areas, has seen unprecedented commercial development over the past few years.
Since the city adopted the Peery Park Specific Plan in 2016, which aims to make the area into a massive modern workplace district, investors and developers have flocked to the neighborhood. Proposals have already been submitted for all of the designated office space in the plan, with some already leased before projects have even broken ground.
Some of the largest Bay Area-based tech companies already have offices in Peery Park or plan to move in when the latest raft of projects are completed. These include Apple, LinkedIn, 23AndMe and Nokia.