Jay Paul Co. eyeing two more towers in Sunnyvale

Well, that didn’t take long. Just a few months after purchasing the Medtronic campus at Highway 237 and Crossman Avenue, the Jay Paul Co. is looking to build two seven-story towers at the Sunnyvale site.

The San Francisco-based force behind the highly successful Moffett Towers project has submitted a preliminary review application disclosing that the company wants to build 541,214 square feet of office and a parking garage on about 15.67 acres at 1221 Crossman Ave.

As I wrote in January, the existing three-building campus is fully leased to Medtronic Corp., though that company is only in one building right now and has a lease expiring in less than two years. The buildings on the site currently weigh in at around 150,000 square feet.

A preliminary review is not a formal project application. It is submitted to gather feedback from the city on what a developer is considering, so the plans could change based on the feedback.

Phil Mahoney, an executive vice president with Cornish & Carey Commercial Newmark Knight Frank who is marketing the property, said the project makes sense as Class A vacancy in Sunnyvale continues to shrink and tenants seek out top-tier office space. Mahoney said the developer would begin the project on spec, at least to start.

“There’s certainly demand,” he said.

The project could be under construction by the first quarter of 2014, if not earlier, and would take about 14 months to build, Mahoney said.

“It’s got its own light-rail stop, with visibility and access,” Mahoney said. “It’s a great little site.”

This would be the third big development project from Jay Paul Co. in the submarket, all located within minutes of each other.

A new office campus in Moffett, called Moffett Place, is currently undergoing an environmental review process. That project would add 1.8 million square feet of building space on about 55 acres near the intersection of Mathilda Avenue and Highway 237. An EIR document shows six eight-story buildings, one two-story amenities building and two parking structures. The site currently has about 473,200 square feet of existing office space, which would be torn down to make room for the new development. Jay Paul Co. is seeking a zoning change from Moffett Park Industrial to Moffett Park Transit Oriented Development to reach the desired density on the site. (Read more about that project here.)

Moffett Towers — the original project of nearly 2 million square feet of office in seven eight-story towers — is pretty much leased up. After sitting vacant for a long stretch, the project filled up big time in 2011 with huge lease after lease. (It was also the winner of the Business Journal’s Best Speculative Deal Winner, which you can read here.) Tenants include Motorola Mobility, Microsoft Corp., Hewlett-Packard Co.Financial Engines Inc., Plaxo Inc., and Amazon.com’s Lab126.

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