Irvine-based Broadcom Corp. could be close to finalizing a deal to build a second office campus for its operations, this time in Silicon Valley, according to news reports coming from Northern California.
The chipmaker is reported to be one of two potential tenants, along with Apple Inc., that is looking to lease a proposed office project totaling nearly 537,000 square feet in North San Jose.
The project’s developer is Boston Properties Inc., which is also planning a major renovation of an existing, four-building office campus it owns next to the development site.
Combining the renovated offices with the ground-up development would allow Boston Properties to offer a single tenant more than 1.1 million square feet to lease at its campus.
Broadcom had been leasing close to 800,000 square feet at a variety of locations in Silicon Valley as of a few years ago.
It has been looking over the past year to consolidate operations at a campus totaling nearly 1 million square feet, according to local news reports.
“We have a potential tenant for the entire site,” Boston Properties officials told the San Jose Mercury News in late August. “It’s a very large tenant.”
The Mercury News report lists Broadcom and Apple as the two most likely tenants for the project.
A recent report by the Silicon Valley Business Journal cites real estate sources that claim Broadcom is the expected tenant.
The chipmaker hasn’t commented on its plans for Silicon Valley, where its operations are roughly the same size as those at its current Irvine headquarters.
Broadcom is being acquired by Singapore-based Avago Technologies Ltd. in a $37 billion deal.
Avago also has a sizeable presence in San Jose, which is home to its U.S. operations, but the impending acquisition doesn’t appear to be impacting the latest lease deal in San Jose, according to the local reports.
Broadcom is still in the early stages of the first phase of development at its new campus at Great Park Neighborhoods in Irvine. Plans call for the campus to encompass five buildings and 1.1 million square feet in its first phase, with the potential to expand to 2 million square feet.
Only a limited amount of groundwork appears to have been done at the 73-acre campus site since a ceremonial groundbreaking event in March.
The Avago deal was announced in May.
Emile Haddad, chief executive of Aliso Viejo-based FivePoint Communities, which is overseeing development of Great Park Neighborhoods, said last month that the campus will still get built, despite the Avago deal.
“We received affirmation from (Broadcom), that they’ll move forward,” he said. “It’s probably not going to be the headquarters (for the combined Broadcom-Avago operations), though.”
Broadcom leased 4.3 million square feet for its global operations as of late last year, including 920,000 in Irvine, according to regulatory filings.
Shea Properties Lease
Restaurant Depot, a bulk supplier of food and related supplies to restaurants and other businesses, has leased a 94,572-square-foot industrial building that’s being built at 17332 Gothard St. in Huntington Beach.
The College Point, N.Y.-based company recently signed a deal to take all of the space at one of two buildings built by Aliso Viejo-based Shea Properties at its Shea Center Huntington Beach development. The site is 6.5 acres.
The 10-year Restaurant Depot deal is valued at nearly $9.8 million. The lease starts at monthly rents of 76 cents per square foot, according to brokers with CBRE Group Inc. who worked on the deal.
CBRE’s Bob Goodmanson, Brad Schneider and Chris Bates represented Shea in the lease, and Lee & Associates’ Jim Snyder and Dale Camera represented the tenant.
