Goldman Sachs, TMG Partners Land $362M Loan for Silicon Valley Office
KKR has provided a $362 million loan to Goldman Sachs Asset Management and TMG Partners for the acquisition and repositioning of a Class A office campus in Silicon Valley’s Mountain View submarket, Commercial Observer can first report.
NortonLifeLock was the seller, and the joint venture paid $358 million for the 446,000-square foot, multi-building office campus, according to The Registry, which first reported that the sale had closed. The software company — previously known as Symantec — previously utilized the campus as its headquarters and is now leasing back one of the office buildings from the new owners.
Cushman & Wakefield’s Rob Rubano negotiated the debt, sources said.
The campus, at 350-380 Ellis Street, was one of 10 properties that NortonLifeLock announced it would unload in the Mountain View area in January 2020. Google was said to be in talks to acquire the 707,000-square-foot portfolio, but put the purchase on ice in April when the country was deep in the throes of the pandemic.
Another portfolio building that recently sold was the Whisman Campus at 515 North Whisman Road and 545 North Whisman Road. The 149,887-square-foot campus was purchased by SteelWave and Angelo Gordon in April for $100.5 million. As reported by CO, the buyers landed a $102 million loan from Blackstone Mortgage Trust for their acquisition in April, also arranged by C&W’s Rubano. As with the Ellis Street buildings, the Whisman Campus is also being repositioned by its new owners.
Mountain View is one of the most highly sought-after office submarkets in the nation, and the area immediately surrounding the campus features a high concentration of Silicon Valley’s technology, software and creative tenants, including Google, Apple, Facebook, Amazon and Samsung. The property also neighbors a strong life sciences cluster that includes ChemoCentryx and Alexza Pharmaceuticals.
Newmark is leasing agent for 350-380 Ellis Street. In addition to featuring plenty of meeting areas and spaces for collaboration, campus amenities include a multi-story parking facility, a gastropub, bocce ball court and a tennis court.
“TMG sees this acquisition of a fully amenitized campus as an ideal addition to our portfolio and greater Silicon Valley strategy for accommodating the evolving workforce in this submarket,” Ben Kochalski, a regional partner with TMG Partners, said in a release regarding the acquisition. “With Newmark leading our leasing outreach, we believe the interconnectivity of the campus, the indoor/outdoor amenities, and the adherence to health and wellness at the workplace will entice best-of-breed companies to headquarter here.”
Officials at Goldman Sachs Asset Management, C&W and KKR declined to comment. TMG officials didn’t respond to a request for comment.