Jay Paul Co. will develop big Sunnyvale office campus

SUNNYVALE — Jay Paul Co. intends to develop two big office
buildings in Sunnyvale now that the storied developer has bought a
site where the new tech campus would sprout.

The developer has bought the site of a proposed project dubbed
Mathilda Commons, which is slated to become a two-building office
campus totaling roughly 385,000 square feet.

Acting through an affiliate, Jay Paul Co. bought on Oct. 29
several parcels where the project would be built, purchasing the
sites from affiliates of the Di Napoli development firm and family,
according to Santa Clara County public records.

“This project is really well-located, it’s near a Caltrain
stop and very close to downtown Sunnyvale,” said Phil Mahoney, an
executive vice chairman with Newmark Knight Frank, who arranged the
property purchase. “There are hotels and restaurants within
walking distance.”

Jay Paul paid $42.9 million for the sites at 625 and 675 N.
Mathilda Ave. near Del Rey Avenue, just a few blocks south of U.S.
101, county documents show. Mahoney will team up with Michael
Saign, a Newmark Knight Frank executive managing director, to scout
for prospective tenants to occupy the new offices.

The deal marks the second time this year that Jay Paul Co. has
bought a choice site in Silicon Valley from a group headed by
veteran developer John DiNapoli.

“We’ve done business before with Jay Paul,” DiNapoli
said.

In June, Jay Paul paid a DiNapoli-headed group $50 million for a
key parcel in downtown San Jose, part of a $100 million set of
transactions that gave Jay Paul control of a site near the corner
of Park Avenue and South Almaden Boulevard where a dramatic new
office tower would be developed. The future downtown San Jose
office tower site is expected to formally break ground this
week.

Similarly, Jay Paul Co. plans to move swiftly with the Sunnyvale
development site. “We will begin construction ASAP,” Mahoney
said.

The campus will also have a large plaza and gathering areas
between the two buildings. Mathilda Commons also is expected to
feature an amenities center.

Plenty of major tech companies — several of them already
tenants in other Jay Paul projects in Sunnyvale — occupy big
office campuses in the vicinity or on the other site.

“There are a lot of great companies in that neighborhood,”
DiNapoli said.

Among the tech behemoths in the area: Google, Apple, LinkedIn,
and Facebook. These companies have all engaged in a wide-ranging
set of expansions in Silicon Valley, through a combination of
leases, or property purchases, or both.

“We are seeing a lot of interest in the project already,”
Mahoney said.

 

Source: FS – All – Real Estate News 1
Jay Paul Co. will develop big Sunnyvale office campus