Sares Regis JV Tops Out Bay Area Mixed-Use Project

Cityline. Rendering courtesy of Gensler

Hunter Storm and Sares Regis Group of Northern California have topped out three buildings within Cityline, an upcoming mixed-use development in downtown Sunnyvale, Calif.

The developers broke ground on this final phase of the project last year and after 15 months, they reached a pivotal point in the construction of two seven-story office buildings and a 12-story apartment tower.

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Dubbed Cityline Block 3 North and developed on a former Macy’s parcel at 200 W. Washington Ave., the office component was designed to attain both LEED Gold and WiredScore Gold certifications, while the entire project is set to be Fitwel certified. Additionally, Cityline is slated to include MERV 15 air filters to ensure adaptability in a post-COVID-19 setting.

A walkable, transit-friendly development

The developers intend to establish a live-work-play neighborhood in the city’s downtown area. The two office buildings will encompass floorplates measuring 45,000 square feet, resulting in a total of about 560,000 square feet of rentable space. Plans also call for a 25,000-square-foot outdoor terrace area, while the ground floors will be exclusively designated for retail use. The Martin, the residential component of the mixed-use development, is set to include 479 units.

CBRE Executive Vice Presidents Vincent Scott and Mike Benevento will oversee office leasing at the upcoming properties. By expanding the historic Murphy Avenue block, the offices will establish a link to the retail quarter of Redwood Square. Designed by Gensler, with Devcon Construction serving as general contractor, both buildings are slated for completion in the fall of 2024.

The first two phases of the 36-acre project include both residential and commercial space. At full build-out, Cityline will feature 1,000 apartments, 1 million square feet of office space and more than 500,000 square feet of retail.

Sunnyvale leads Silicon Valley office construction

According to a recent report by Colliers, more than 6.2 million square feet of office space is currently under construction in the Silicon Valley area, with more than half of the development pipeline concentrated in Sunnyvale. It is anticipated that almost 50 percent of these projects will be completed this year.

The same report shows that leasing activity in the Silicon Valley area remained healthy at the beginning of the year, even though gross absorption decreased by 47.6 percent year-over-year through March, signaling a slowdown in the market. Part of this can be attributed to the ongoing tech layoffs and rising interest rates.