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December 04, 2019  

Vacant Complex Up for Grabs in Silicon Valley

Investors are getting a crack at a Silicon Valley office/research complex that a cybersecurity company is vacating in the wake of a corporate merger.

The offering encompasses 10 buildings totaling 707,000 square feet in Mountain View, Calif. Bids are expected to exceed $1,000/sf, which would value the property at more than $700 million.

The complex was the headquarters of Symantec’s enterprise-security unit before its purchase last month by Broadcom for $10.7 billion. Broadcom has since rebranded the business NortonLifeLock and is moving its headquarters to Tempe, Ariz.

Cushman & Wakefield, which is marketing the Mountain View complex for San Jose-based Broadcom, is telling investors the space will be vacant by the time the property sale closes.

The offering has three components: a cluster of five Class-A office buildings totaling 428,000 sf; two office/R&D buildings totaling 150,000 sf; and two other office/R&D buildings and a data center totaling 128,000 sf. Investors can bid on the whole portfolio or on individual pieces.

The marketing campaign is emphasizing the potential for a large technology company to buy the entire property for its headquarters. Amid rapid expansion, tech firms have been snapping up large blocks of office/R&D space in Silicon Valley.

Symantec spent $90 million on improvements in the past three years, upgrading lobbies and adding space for technology demonstrations.

The Class-A offices are on 20 acres at 350-380 Ellis Street. A garage and surface lots have more than 1,400 spaces combined. Amenities include kitchens on every floor, a cafe and an outdoor patio.

The two main R&D buildings are on 10 acres at 515-545 North Whisman Road. They have 525 parking spaces.

The third piece, on 11 acres at 455, 487 and 501 East Middlefield Road, encompasses two office/R&D buildings totaling 96,000 sf and a 32,000-sf data center. The pitch is that a buyer could redevelop that property as a mixed-use complex with higher density.