Dive Brief:
- The site of Apple’s new, 770,000-square-foot leased Central & Wolfe campus in Sunnyvale, CA, is about to get a new owner, according to the Silicon Valley Business Journal. According to three industry sources, San Francisco-based developer Jay Paul Co. is in advanced discussions to purchase the property from Landbank Investments, the Business Journal reported. Neither company will comment, but according to public records, Central Wolfe Management, Inc., registered as a new entity with the state of California on Nov. 25, which is linked to Jay Paul’s San Francisco office.
- Industry experts surmise that if the deal goes through, Jay Paul will pay $200 million or more for the campus and has the resources, including its own construction company, to ensure the campus will actually be built. Jay Paul has multiple Class A office holdings in Sunnyvale, and its purchase of the fully leased complex is seen by many as an investment with a guaranteed return.
- Apple signed a 12-year, six-month lease term with two seven-year extension options for the entire campus in September, the Business Journal reported. Apple did not exercise its option to purchase the property itself. Landbank has not stated whether the ability to finance the construction of the campus was a factor in putting the property up for sale.
Dive Insight:
The Sunnyvale property features three connected buildings with green spaces, rooftop gardens, open courtyards, jogging and walking trails. It can accommodate another 4,000 workers, according to reports.
The Central & Wolfe complex has been called Apple’s "second spaceship," in reference to Apple's "spaceship" Apple Campus 2 project still under construction in Cupertino, CA, which has been heralded as a project that "has raised the bar for construction standards." However, it has also faced some building complications, as it replaced Swedish construction giant Skanska and American commercial contractor DPR Construction on the project after a string of reported delays and cost overruns. The company broke ground on the project in 2014, but the completion date has been repeatedly pushed back.
Apple is also in the process of drafting a development agreement with the city of San Jose, CA, for up to 4.15 million square feet on 86 acres. The development agreement does not describe what sort of buildings Apple plans to build, but lists the intended use as "industrial development, including office, research and development, manufacturing and other related and supporting uses."