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Bluerock affiliate buys Sunnyvale office hub for $330.7M with leaseback
The Sunnyvale asset totals 319,000 square feet and is leased to Juniper Networks through 2047, backed by a $310 million acquisition loan.
An affiliate of Bluerock, an alternative asset firm based in New York, has acquired an office hub in Sunnyvale for $330.7 million, according to reporting by Bisnow and the Silicon Valley Business Journal.
The property at 1133 Innovation Way, near Moffett Field, includes an eight-story, Class A building totaling 319,000 square feet, and the buyer entered a long-term leaseback arrangement with the tenant through 2047. The complex is currently occupied by Juniper Networks, which Hewlett Packard Enterprise acquired last year, while HPE continues to occupy an adjacent building at 1137 Innovation Way.
HPE sold the 1133 Innovation Way building as part of its strategy for its real estate portfolio, an HPE spokesperson told the Silicon Valley Business Journal. The Mercury News reported that Bluerock funded the acquisition with a $310 million loan led by a group associated with Wilmington Trust.
The deal comes as office leasing and occupancy remain uneven across the Bay Area. Kidder Mathews reported that Peninsula office vacancy averaged 23.8% in the second quarter of 2026, with Redwood City at 37.4% and South San Francisco at 34.2%, even as Silicon Valley vacancy was much lower at 16.0%.