SUNNYVALE — A big-time Bay Area real estate company has purchased a modern office building in Sunnyvale that has been leased to Nokia in a deal that shows investors are betting on a solid future for Silicon Valley.
GI Partners, acting through an affiliate, purchased a recently completed office building at 520 Almanor Avenue in Sunnyvale’s Peary Park district for $254 million, according to public documents filed at the Santa Clara County Recorder’s Office on July 20.
The building totals 230,000 square feet and was developed by Lane Partners.
The purchase of the property was accomplished through a grant deed and an assignment of a land lease for the land beneath the gleaming new office building.
GI TC Peary Park is an affiliate of GI Partners that purchased the building and received a lease of the land, county records show.
“The deal shows that people believe the office market in Silicon Valley will return,” said David Sandlin, executive vice president of Colliers, a commercial real estate firm.
The deal works out to about $1,100 per square foot for the building, which represents a healthy market value in Silicon Valley.
According to the Lane Partners webpage, the entire building has been leased to Nokia.
Peary Park has recently become a hotbed of activity.
In May, Apple leased 701,000 square feet in Pathline Park, a sprawling technology complex the Irvine Company is developing in Sunnyvale.
Irvine has also leased space in Pathline Park to tech firms Proofpoint and Synopsis.
Synopsys leases approximately 350,000 square feet across three buildings in Pathline and Proofpoint leases approximately 242,000 square feet in two buildings.
According to the Lane Partners online site, the office building that Nokia has leased on Almanor Avenue also includes about 7,000 square feet of outdoor terrace space.
About 4,000 square feet of space is also available for a cafeteria or retail site on the ground floor of the building.
“This transaction points to the strength of the office market in Silicon Valley,” Sandlin said.