Java Metro Center, a New Class A Mid-rise Office Campus Development Starts in Sunnyvale's Moffett Park

July 31, 2007 -- Sunnyvale, Calif. - CPS CORFAC International announced that two of the company's top producing brokers, Senior Vice President/Principal Steve Pace and Senior Vice President/Principal Dan Hollingsworth, have been retained by SCM Properties LLC of Menlo Park to market a new, 390,000-square-foot campus development in Sunnyvale that will contain three buildings of four and five stories each plus a parking structure. The new Class-A development has been named Java Metro Center.

SCM Properties originally acquired the redevelopment site in the early 1980s and built three, single-story R&D buildings located at 111 Java Drive, 169 Java Drive and 140 Caspian Court. The original tenant was Lockheed Martin Corp. and later, the properties served as the headquarters for SanDisk Corp. until their relocation to Milpitas in 2006.

SCM Properties has teamed with ExTerra Realty Partners LLC of Pleasanton, which is headed by former long-time Koll Development Co. partner Mike Parker. SCM and ExTerra are capitalizing on an accelerating trend to re-develop aging R&D sites from the 1980s by replacing them with mid-rise, Class A office buildings favored by contemporary high-tech tenants.

The Moffett Park site controlled by SCM Properties is consistent with Sunnyvale legislation that permits certain properties within the Moffett Park Specific Plan Area to be re-developed with increased density as a "Transit-Oriented Development."

Java Metro Center is entitled for two, four-story buildings of approximately 120,000 square feet each and a five-story, 150,000-square-foot building. The 111 Java Drive property will serve as a "signature" building, situated at the corner of Java Drive and Borregas Avenue and immediately across from the Borregas Light Rail Station along Java Drive.

Demolition has commenced on the 111 Java Drive site, where the five-story building will be constructed as the first building in a phased development plan. The 150,000-square-foot building has 30,000-square-foot floorplates and is slated for occupancy in the third quarter 2008. The building at 169 Java Drive is occupied and the 140 Caspian Court building, which is approximately 104,000 square feet, is available for lease. A timeline for their respective demolition and replacement with the four-story buildings has not been established. Land is set aside within the 140 Caspian site in the second phase of development for a possible fourth building and construction of a parking structure.

The site is just north of Highway 237 in Moffett Park and near Highway 101. The properties are a few blocks from the corporate campuses of Yahoo Inc., Juniper Networks and Network Appliance.

"With severely constrained supply for Class A offices in Silicon Valley and few large contiguous blocks of space available for lease in Sunnyvale, tenants in the marketplace are expressing strong interest for a portion of the campus or potentially all of it," said Mr. Pace. He added that asking rental rates for Java Metro Center have not been established but current rates in the area are "about $3 per-square-foot and escalating monthly as supply dwindles in step with the region's expansion of high technology companies."

The development is being built to "green" specifications provided by the United States Green Building Council (USGBC) in order to conform to LEED certification under the organization's Silver rating, according to Mike Parker. It is the first LEED Silver development project in the City of Sunnyvale.

SCM Properties and ExTerra are recycling most of the materials from the demolished buildings, with existing concrete and asphalt paving to be used as on-site, infill materials while other materials such as metal studs are slated for recycling and copper wire is being pulled from the existing structures to be re-used. The USGBC directs and administers its Leadership in Energy and Environmental Design (LEED) program to rate buildings for varying degrees of sustainable building practices during construction, ranging from basic LEED Certification to the higher Silver rating. The highest rankings of "green" construction in LEED certification are Gold and Platinum.

Architecturally, Java Metro Center will have a timeless design that brings together attractive stone, metal and glass. The buildings will have pre-cast concrete panels and glass-curtain walls that are rich in color and accented by metal panels and extruded mullions. "The redevelopment of this excellent site is consistent with the trend of replacing the region's older building stock of single-story, concrete tilt-up construction with what today's Silicon Valley users are demanding - namely, more functional state-of-the-art facilities in mid-rise campus environments that are readily accessible from highways and mass transit," said Mr. Parker.

Java Metro Center was designed by Chang Architecture of Burlingame. The Wentz Group, based in Redwood City, is the general contractor. Project financing was arranged by the Orange County and San Francisco offices of HFF (Holliday Fenoglio Fowler, L.P), based in Irvine.