Mesa West Provides $62M for Silicon Valley Office Building

Mesa West Capital has provided a $61.5 million short-term, first-mortgage loan to a Southern California-based real estate investment firm to finance a 125,000-square-foot office property in Sunnyvale, Calif. JLL Capital Markets arranged the financing.

The sponsor was not disclosed, but information provided by Yardi Matrix states that the owner is LBA Realty, of Irvine, Calif., which acquired the property from SteelWave for $42.5 million.

285 Sobrante Way was built in 2021 by an institutional developer. The four-story, Class A, LEED Gold–certified property features 31,275-square-foot floor plates, floor-to-ceiling windows, on-site solar generation and 4,000 amps of power.

Six months after acquiring the then-vacant property through a receivership sale in June 2025, LBA executed a long-term lease with Pinterest for 100 percent of the building.

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The property sits among Silicon Valley’s primary employment hubs, including Palo Alto, Mountain View, Sunnyvale, Cupertino, Santa Clara and North San Jose, where major technology companies occupy more than 1 million square feet of office space. The property provides walkable access to the Sunnyvale Caltrain station and is also near Cityline Sunnyvale, a major mixed-use destination featuring about 600,000 square feet of retail.

The financing was arranged by the JLL Capital Markets team of Americas President Kevin MacKenzie, Senior Director Peter Thompson and Director Spencer Bergthold.

Josh Westerberg, head of Mesa West Capital’s West Region, led the origination team from the firm’s San Francisco office, alongside Vice President Hoony Shin.

Metrics improve as deliveries pause

With no new deliveries in Sunnyvale over the past few years, rising demand from technology companies should sustain the submarket’s outperformance, Westerberg said in prepared remarks.

Office leasing activity in Silicon Valley maintained positive momentum for several consecutive quarters, driven primarily by large renewals, according to a third-quarter JLL report. Both vacancy and availability continued to decline, while the number of available spaces exceeding 100,000 square feet fell to just 36.

Less than two months ago, Tishman Speyer sold 400 Castro St., a 138,000-square-foot office building in downtown Mountain View, to Spear Street Capital for $121.5 million. Tishman Speyer had developed the Class A building in 2002 and immediately leased the office space in its entirety to law firm Fenwick & West, which has remained a tenant there ever since.

And last May, a joint venture of Rubicon Point Partners and Canyon Partners Real Estate acquired a 201,078-square-foot, four-building campus in Santa Clara. The nearly 13-acre R&D site is fully triple-net leased to Shockwave Medical, a subsidiary of Johnson & Johnson, and serves as the company’s headquarters.