SUNNYVALE RESEARCH»»» CENTER»»» 1050-1090 EAST ARQUES, SUNNYVALE, CALIFORNIA EXECUTIVE SUMMARY
EXECUTIVE SUMMARY PROJECT OVERVIEW Colliers International, as Exclusive Advisor, is pleased to present the opportunity to acquire Sunnyvale Research Center located in Sunnyvale, CA, subject to a long-term ground lease. Originally constructed in 1985 with recent extensive upgrades throughout, Sunnyvale Research Center consists of four two-story buildings totaling approximately 224,548 square feet. The project is 100% leased with renewal options, providing strong immediate cash flow from a valuable tenant. Address City, State Total Building Area Total Site Area 1050 East Arques, 1070 East Arques 1060 East Arques, 1090 East Arques Sunnyvale, CA ±224,548 SF ±14.1 Acres The property is located in the Sunnyvale submarket of Silicon Valley with outstanding visibility and easy access to Highway 101 and Central Expressway. Access to Caltrain s Downtown Mountain View & Lawrence Station is available via a free Caltrain Shuttle. Sunnyvale Research Center presents investors the unique opportunity to acquire a strategically located multi-building office campus in a strong submarket with in-place income from the tenant. The tenant has also invested significant capital in the project, and recently entered into a lease extension demonstrating its ongoing commitment to this location. INVESTMENT HIGHLIGHTS Description Office Assessors Parcel # 205-37-009 Zoning ML Occupancy 100% Elevators Year Built/Renovated No. of Buildings 4 1 in 1050 East Arques 1 in 1060 East Arques 1 in 1070 East Arques 1985 with recent major renovations from 2012-2016 Rentable Building Area 224,548 No. of Floors 2 per building Percentage Leased 100% LEASE OVERVIEW GROUND LEASE OVERVIEW Tenant Apple, Inc. Term 80 Years Lease Type NNN Options One 20 Year Option Further details about the lease will be included in the Offering Memorandum
TROPHY INSTITUTIONAL QUALITY ASSET Sunnyvale Research Center has been institutionally owned and managed to the highest standards for over 20 years. Each of the Property s two story buildings has high quality interior improvements and are similar in layout and design. The office buildings range in size between 35,330 and 74,011 square feet and are adaptable to many uses with private offices, conference rooms, and large open areas for cubicles. The campus is abundantly landscaped with ample on-site parking. BEST IN CLASS INVESTMENT GRADE TENANT The Property is 100% leased to Apple, Inc. (NASDAQ: APPL), an investment grade tenant rated A+ by S&P, Aa1 by Moody s and BBB by Fitch. According to Forbes, Apple is the largest publicly-traded company in the world based on both market capitalization ($586 billion) and annual net profits ($53.7 billion). LONG TERM SINGLE TENANT NET LEASED INVESTMENT Sunnyvale Research Center provides a rare opportunity for an investor to acquire a best-in-class single tenant, four building office campus in Silicon Valley with minimal management and stable cash flow. The Property is 100% leased to the tenant.
FUNCTIONAL REAL ESTATE WITH EXTENSIVE MARKET-READY RENOVATIONS The Property consists of four, two-story office buildings adaptable to many uses with high first floor clear heights, ample power and modern interiors with private offices, conference rooms, cafeteria space and large open areas for cubicles. The owner and tenant have invested over $150 psf in project renovations including fully-renovated class-a office improvements throughout, new building systems, 2 new roofs, and parking lot improvements. Millions (SF) 10 8 6 IRREPLACEABLE SUNNYVALE REAL ESTATE The Property is located in Sunnyvale with outstanding visibility and easy access to Hwy 101 and Central Expressway. Access to Caltrain s Downtown Mountain View & Lawrence Station is available via a free Caltrain Shuttle. The Property is also located in close proximity to the new Sunnyvale Town Center. The Town Center project is an approximately 36 acre site in the core of downtown Sunnyvale bounded by Mathilda, Washington, Sunnyvale and Iowa Avenues. Located just south of the Historic Murphy Avenue District, the approved plans call for establishing a six-block mixed use development with emphasis on retail, restaurant and entertainment uses. Approved land uses include up to 1,000,000 square feet of retail uses (includes existing Target and Macy s stores), 292 residential units, 315,000 square feet of office space, and a hotel of up to 200 rooms. 4 2-2002 2003 2004 2005 2007 2008 2009 2010 2011 2012 2013 2014 2015 EXCEPTIONAL OFFICE MARKET IN THE HEART OF SILICON VALLEY Office leasing activity in Silicon Valley measured 1.2 million square feet during the second quarter of 2016 and the office market recorded its sixteenth consecutive occupancy gain. Total available space has increased 12.9% yearover-year to an overall availability rate of 10.2%.
PROPERTY SNAPSHOT Sunnyvale Research Center consists of four two-story office buildings totaling approximately ±224,548 SF of building area located on a ±14.1 acre site. The project is 100% lease to Apple Inc. The property has been institutionally managed and has undergone extensive market-ready renovations. Sunnyvale Research Center is strategically located in the Sunnyvale submarket of Silicon Valley off of Lawrence Expressway and Central Expressway with outstanding visibility and easy access to Highway 101. There are many amenities nearby and the property is in close proximity to the new Sunnyvale Town Center. 1070/1080 60,283 SF 1060 54,924 SF 1050 74,011 SF 1090 35,330 SF
New Apple campus BLUE COAT SUNNYVALE RESEARCH CENTER APPLIED MATERIALS IRVINE COMPANY / PLANNED RESIDENTIAL DEVELOPMENT Central Expressway Lawrence Expressway BLUE COAT TELENAV WATT COMPANY / 24.5 ACRE RESIDENTIAL DEVELOPMENT
1050-1090 EAST ARQUES, SUNNYVALE, CALIFORNIA EXCLUSIVE INVESTMENT ADVISORS BOB GILLEY Executive Vice President 415.288. 7887 robert.gilley@colliers.com Lic. 01084869 KEVIN MOUL Vice President 408.282.3873 kevin.moul@colliers.com Lic. 01836970 JOSEPH HIGGINS Financial Analyst 415 288 7811 joseph.higgins@colliers.com Lic 01976521 LOCAL MARKET ADVISORS GREGG VON THADEN Executive Vice President 408.282.3915 gregg.vonthaden@colliers.com Lic. 01007475 San Francisco Daly City Pacifica 280 El Granada 101 Half Moon Bay San Mateo Lobitos Pescadero Berkeley Oakland Alameda 280 La Honda San Leandro 101 Palo Alto Hayward 880 580 Union City Sunnyvale 680 880 SUNNYVALE RESEARCH CENTER 280 Diablo Milpitas Campbell Saratoga Los Gatos Tassajara Liver Pleasanton 680 680 San Jose DONALD H. REIMANN, SIOR Executive Vice President 408.282.3888 don.reimann@colliers.com Lic. 00772400 Boulder Creek Brookdale Ben Lomond Swanton Scotts Valley Davenport Soquel Santa Cruz Aptos Am