CBRE Arranges $120M For Cupertino, Calif. Offices

CBRE Capital Markets arranged $120 million in financing for two office buildings totaling 260,000 square feet in Cupertino, Calif.

CBRE Executive Vice President John Nelson and Senior Production Analyst Erik Franks of CBRE’s San Francisco office arranged financing on behalf of the borrower, a joint venture between Sand Hill Property Co., Menlo Park, Calif., and its capital partner. HSBC Bank USA provided the LIBOR-based variable interest rate financing.

Nelson said Sand Hill Property Co.’s mixed-use development under construction, called Main Street Cupertino, will include office, retail, hotel and loft apartments. The offices delivered earlier this year and the retail component should be completed by year-end. Several retailers including Lazy Dog, Lyfe Kitchen, TD Ameritrade, Eureka!Burger and Philz Coffee have already opened. The Marriott Residence Inn hotel and the apartments will open in 2017.

“The project’s central location and ambiance will make it highly sought after by office, retail and residential tenants as well as hotel guests,” Nelson said.

Main Street Cupertino’s design will also include a one-acre town square and a half-acre park, Nelson noted.

Apple and other large technology companies headquarter their operations in Cupertino, and average household incomes in the city approach $190,000. The market benefits from growing high-income tech jobs, which boost the economy and the commercial real estate market.Cupertino’s office market remains one of the tightest in Silicon Valley with total overall office vacancy of just 2.2 percent in the first quarter. The Cupertino multifamily and hotel markets also continue their strong pace with rising rents, room rates and minimal vacancies.