Drawbridge Realty has paid an estimated $185 million to buy a five-story office building in Downtown Sunnyvale leased to Uber.
The San Francisco-based investor bought the 157,000-square-foot building at 200 South Mathilda Avenue, the San Jose Mercury News reported. The seller was JPMorgan Chase, based in New York.
Drawbridge paid around $185 million, according to estimates provided by commercial property experts familiar with the details of the deal. The estimated price represents $1,178 per square foot. Terms of the Uber lease were not disclosed.
“This is a highly appealing Silicon Valley asset leased long-term with a strong tenant in place in an area that continues to attract companies because of the deep regional talent pool, especially in engineering,” Charlie McEachron, an executive with Drawbridge Realty, told the Mercury News.
High-profile tech tenants remain a magnet for investors. The building is located in an area of Downtown Sunnyvale undergoing a retail turnaround, with the addition of a Whole Foods Market and AMC Dine-In Sunnyvale 12 movie theater anchoring new restaurants and shops.
Ongoing projects by developers to add thousands of new homes to the Downtown have energized the city’s urban core.
“The price is appropriate for this type of well-located building with a credit tenant,” David Sandlin of Colliers, said of the Drawbridge deal. “Downtown Sunnyvale is a great market.”
Eastdil Secured, a commercial brokerage, helped to arrange the Drawbridge purchase.
“200 South Mathilda is truly transit-friendly, situated very close to Caltrain but with excellent parking and easy access to communities throughout the Peninsula and greater Bay Area,” Jaden Rosselli, a Drawbridge executive, told the Mercury News.
Drawbridge Realty, which manages $1.7 billion of Class A office properties across 12 U.S. markets, plans to invest $500 million a year in the assets, doubling the size of its portfolio in three years, CEO Mark Whiting announced in March.
— Dana Bartholomew
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