Intuitive Surgical widens expansion footprint with new Sunnyvale deal

SUNNYVALE — Intuitive Surgical has bought some old research
and office buildings in Sunnyvale, a deal that took place in area
where the company has been busy lately attempting to expand its
footprint.

The maker of advanced medical devices and equipment purchased
three low-slung buildings on Commercial Street on sites that are a
short distance from the company’s headquarters in Sunnyvale.

Intuitive Surgical paid $15.1 million for the buildings, which
are located at 164 Commercial St. through 174 Commercial St. in
Sunnyvale and are on the south side of Central Expressway,
according to Santa Clara County property records that were filed on
April 30.

The seller in the all-cash deal was an affiliate of the Rice
Family, the public documents show.

“This is an excellent redevelopment opportunity,” according
to a brochure from commercial real estate firm Newmark Knight
Frank, which was marketing the property for sale.

The property currently contains three buildings that together
total 36,000 square feet.

But the real value in the deal might reside in the four acres of
land beneath the one-story buildings, which range in size from
10,000 square feet to 16,000 square feet.

That’s because the zoning for the property could allow a
building as large as 119,000 square feet to 170,000 square feet,
using a complex formula based on floor-area-ratios.

“The possibility of increased density provides the value
enhancement for this property,” Newmark Knight Frank brokers
David O’Such and John McKenna wrote in their marketing
brochure.

Sunnyvale-based Intuitive Surgical has been finding potential
expansion sites near its head offices through leases of office
buildings, or purchases of properties where existing buildings
could be bulldozed and replaced with modern offices.

In February, Intuitive Surgical leased two big buildings in
Santa Clara at 3410 and 3420 Central Expressway that together total
210,000 square feet.

In March, the company paid $30.4 million in cash for a
47,000-square-foot building at 818 Kifer Road, just east of Wolfe
Road.

Over the 12 months that ended in March, Intuitive Surgical
earned $1.15 billion on $3.85 in revenue. The company, a leader in
surgical robotics, is best known for its da Vinci Surgical System,
which melds software, hardware, and optics to enable doctors to
perform surgeries aided by robots from a remote console.

All of these transactions, the two property purchases and the
leasing deal, are not only in close proximity to the company
headquarters at 1020 Kifer Road in Sunnyvale, but also are near a
busy train station.

“The property is immediately contiguous to the Lawrence
Station planning area established by the city of Sunnyvale to guide
future development of the area surrounding the Lawrence Station to
created increased Caltrain ridership,” the Newmark Knight Frank
brochure stated.

Source: FS – All – Real Estate News 1
Intuitive Surgical widens expansion footprint with new Sunnyvale deal