Bandley Drive, located in Cupertino, CA, consisted of two 30-year-old research and development buildings -- which were approximately 80 percent built out as office space -- with Apple as the anchor tenant and smaller, non-credit tenants. We saw an opportunity to acquire a core+ asset with short-term leases at below market rents and reposition it to a full office build-out with market rate, long-term leases to credit tenants.
- LocationCupertino, CA
- Size52,438 SF
- Investment strategyCore+ to Core
- Acquisition dateJune 2007
The heart of our strategy was to reposition the nearly 20 percent flexible space to office space to justify higher rents, then extend and expand Apple’s occupancy on a long-term basis at higher market rents. We also completed several targeted capital improvements and deferred maintenance projects to upgrade the property.
Our team successfully negotiated Apple’s long-term lease extension and expansion into the newly configured office space. Occupying most of the project, Apple also committed to lease the remaining space when it became available, thus guaranteeing Apple credit in the entire project for the long term. In April 2012, we sold the property to a private buyer.