By Scott Baltic
HFF has arranged $150 million in permanent financing for 1625 Plymouth, a 245,738-square-foot build-to-suit office development in the North Bayshore submarket of Mountain View, Calif. The brokerage firm worked on behalf of Broadreach Capital Partners to secure the fixed-rate loan through New York State Teachers Retirement System.
The loan closing coincided with the completion of the warm shell and the building’s delivery to the tenant for their buildout. According to Yardi Matrix data, Google will occupy the entire property. The Class A, LEED Platinum building will feature multiple outdoor deck spaces for functions and activities. 1625 Plymouth is directly off Highway 101 in the heart of Silicon Valley and near some of the Bay Area’s most affluent communities, including Atherton, Palo Alto, Los Altos, Los Altos Hills, Portola Valley and Woodside.
The six-story building is on a site of about 5.15 acres and will also feature a fitness center and redundant power, according to information provided to CPE by Yardi Matrix.
The HFF debt placement team consisted of Senior Managing Director Bruce Ganong and Analyst Bercut Smith. HFF was barred from providing additional information, and Broadreach did not reply to Commercial Property Executive’s request for further information.
Low unemployment, strong office market
In a complex environment of essentially full employment, high housing costs and continued tech growth, the Silicon Valley office market continues to see generally tight vacancies, with net absorption topping 1 million square feet in the first quarter, according to a recent report from Cushman & Wakefield. An estimated 3.2 million square feet under construction is not expected to prevent the average asking rent from remaining around $4.60 per square foot, on a monthly full-service basis.
In one recent lease deal, in January cloud services provider 8×8 took 162,557 square feet at Hunter Properties’ Coleman Highline development in San Jose, that project’s first lease. In March, InvenSense Inc., a subsidiary of TDK, renewed its 139,36-square-foot lease at Hudson Pacific Properties’ Concourse VI, also in San Jose.
Image courtesy of HFF