T
idewater Capital is expanding its presence in Sunnyvale's office real estate market, purchasing the 175,000-square-foot Sunnyvale Business Center for $65 million. The three-building campus at De Guigne Drive was sold by St. Paul Fire & Marine Insurance and represents a 9.4% premium over its assessed value of $59.4 million. The deal works out to $371 per square foot.

    Tidewater obtained a $75 million loan from Maxim Credit Group to finance the purchase, which comes as the office market is experiencing a slump due to remote work trends. Vacancies in San Francisco and Downtown San Jose have risen to 37.3% and 35.6%, respectively, while Silicon Valley's vacancy rate stands at 21.9%. However, Sunnyvale appears to be a bright spot, with a vacancy rate of 18.4%.

    This purchase marks Tidewater's second significant investment in the area within three months, following its $100.8 million acquisition of a seven-building tech campus surrounding Stewart Drive. The firm has secured over $200 million in equity commitments for its latest fund and is expanding its presence in the Bay Area.