Silicon Valley Renaissance Man Mark CalvanoOct 01, 2018
A credit tenant with a long-term lease will go far for a property owner in Silicon Valley. This week proves just how far, as a Google-leased building and land located in Mountain View traded for $169,946,503, according to public records. The seller of the roughly 133,000 square-foot office property was Calvano Development, who also developed the building. The buyer was San Francisco-based Stockbridge Capital.
The building sits on a fairly sizable parcel that is mostly used as surface parking. The four-story office development occupies around a quarter of the square footage of the lot.
The project was recently completed, and it was developed by the seller, San Francisco-based Calvano Development. The development cost Calvano around $100 million, and it was funded by Washington, D.C.-based The Carlyle Group and Tysons Corner, Va.-based US Bank, according to an earlier report by The Registry. The major capital source for the project was an approximately $67 million construction loan that was provided by US Bank. This loan had a three-year term. There was also roughly a $33 million equity investment in the project made by The Carlyle Group. Both the debt and equity for the development was arranged by the San Francisco office of The Greenwich Group International.
Carlyle made its equity investment into the development for its latest opportunistic commingled fund, Carlyle Realty Partners VII.
At the end of 2015, just before the construction took off, Google had signed a long-term lease for the building, securing the property as it continued its expansion throughout Mountain View. Calvano was represented in the lease by Phil Mahoney and Randy Gabrielson of Newmark Cornish & Carey. According to the Mercury News report, public documents state that Google has an option of first offer to buy the property from Stockbridge, which is not surprising given the amount of property the company had acquired over the years in a city that has become synonymous with the technology giant.
According to public documents, Stockbridge also worked with Deutsche Asset Management on the deal. The New York-based investment management firm provided Stockbridge a $110.5 million loan, 65 percent loan-to-value, for the acquisition.
According to Calvano’s web site, the project at 1001 N. Shoreline began in 2014 as a land assembly of ten parcels from eight different ownerships. Calvano Development recognized the importance of the nexus of Highway 101 and N. Shoreline Blvd as an exclusive address and one of the most coveted submarkets in Silicon Valley, the company stated.
The project offers four floors of Class A office space, and it meets the LEED Gold sustainability standards. Additionally, the building offers high-performance glass as well as energy-efficient heating, cooling and lighting systems. With structural steel construction, the building offers a host of amenities including high ceilings with floor-to-ceiling glass allowing for abundant natural light, according to Calvano. Other amenities include 7.8 acres of extensive landscaping with front, rear and side outdoor patios as well as basketball, volleyball and 13 distinct outdoor collaboration areas.