South Bay office campus bought in sign of market confidence

SANTA CLARA — The Campus at Scott, an office and tech complex in Santa Clara big enough to accommodate 1,800 to 2,300 workers, has been bought by an alliance of Bay Area real estate firm Ellis Partners and Boston-based hedge fund Baupost Group.

“We are thrilled to add these high-quality buildings to our growing portfolio of Silicon Valley office and research and development assets,” said Kevin Bocci, an Ellis Partners senior vice president. “We are excited to reintroduce the project and partner with Silicon Valley companies on their real estate needs going forward.”

The Santa Clara campus totals 460,000 square feet and has addresses of 3315, 3325, and 3355 Scott Blvd. New York City-based Clarion Partners sold the property.

“The investment comes at a time of significant renewed leasing activity in Silicon Valley and a national flight to quality within the office sector,” Ellis Partners stated regarding the transaction.

Tech companies have shown they have plenty of confidence in the South Bay office market.

In recent weeks, Apple, through a combination of real estate purchases that were either fully complete or pending, has agreed to pay $881.9 million for an array of buildings in Cupertino and Sunnyvale.

Nvidia launched a shopping spree for properties in Santa Clara that now totals $751.5 million as it expands its presence in its hometown.

Ellis Partners is planning a significant upgrade to help attract tenants to The Campus at Scott, including amenities tied to fitness, food and outdoor areas. Santa Clara Square, a retail and restaurant hub, is within walking distance as well.

“Having witnessed the dynamism of the Valley ecosystem through multiple cycles, we have high conviction that providing quality and amenitized workplaces to the market in Class A settings like the Campus at Scott will continue to be a winning thesis,” said Jason Morehouse, chief investment officer with Ellis Partners.