US lender Mesa West has provided 61.5 million dollars in refinancing for a Class A office building in Sunnyvale, California. The property is owned by LBA Realty, which holds the approximately 125,000-square-foot asset in the heart of Silicon Valley. The financing transaction was arranged by a JLL Capital Markets team comprising Kevin MacKenzie, Peter Thompson and Spencer Bergthold.
Space shortage meets demand driven by artificial intelligence
The provision of debt capital comes against the backdrop of an increasingly tight market environment across the region. Hoony Shin, Vice President at Mesa West, noted that no significant newly built Class A office space had been completed in Sunnyvale in recent years. At the same time, the local technology sector is experiencing marked growth driven by developments in artificial intelligence.
According to research by JLL, the availability rate for Class A office space dropped to 11 per cent in the second quarter of 2026, marking the third consecutive decline. Josh Westerberg, head of capital markets at Mesa West, stated that Silicon Valley continues to be one of the premier innovation and technology markets in the United States, supported by a highly skilled workforce and high volumes of venture capital investment.
Development and history of the property
The office building is situated at 285 Sobrante Way in Sunnyvale, a city of around 150,000 residents in the immediate vicinity of Palo Alto, Cupertino and Santa Clara. Opened in 2021, the property features on-site solar power generation.
LBA Realty acquired the building in June 2025 for 42.3 million dollars. Prior to that, the property had spent around a year in receivership after former owners SteelWave and Principal Real Estate Investors were unable to meet their debt service obligations under the original construction loan.
- —Financing volume: 61.5 million US dollars provided by Mesa West
- —Property size: 125,000 square feet of Class A office space, completed in 2021
- —Transaction history: Acquired by LBA Realty in June 2025 for 42.3 million dollars
- —Intermediary advisers: JLL Capital Markets (Kevin MacKenzie, Peter Thompson, Spencer Bergthold)
