Apple PHD
The vacant former owner-user building was about to be widely marketed for sale. Through local broker relationships, Ownership was able to do a direct deal with seller before the property went to market. Through proprietary market analysis, Ownership determined that vacancy rate for this asset (single story, 100,000+ SF, high 25’ ceilings) in this particular market was below 3%. Conventional solution for solving deficient parking count (2.3 : 1,000) was to build a parking structure on-site. Ownership’s innovative solution was to demolish 10,000 SF of building floor area to create additional surface parking and replace the “lost” SF with useable, creative mezzanine within the 25’ clear height. This resulted in parking count of 3.5:1,000 and simultaneously created funky/cool creative office space with no loss of rentable square feet.
EXECUTION
Ownership completed in only six months the design, extensive structural engineering, full DDs and CDs, building permit and fully negotiated GMP construction contract. Ownership engaged during the design process a best in class brokerage team to begin marketing for lease the to-be-renovated building. Through exceptional product vision, design, and renderings, we created a competitive bidding process with multiple potential tenants before the renovation had even begun. The building was leased to Apple on a long-term NNN basis and Ownership sold the leased asset shortly thereafter with a total deal lifespan of 18 months.
ADDRESS
5301 Patrick Henry, Santa Clara, CA
PROJECT SIZE
130,000 Square Feet
PROPERTY TYPE
Office Construction
ACQUIRED
December 2014
SOLD
May 2016