It isn’t Facebook, but Bixby Land Co. has landed a Silicon Valley tech company flush with cash from a recent initial public offering to fill up a Santa Clara office it owns and recently renovated.
Bixby, an Irvine-based real estate investor and developer, said last week it signed network infrastructure company Infloblox Inc. to lease a two-building, 127,000-square-foot office campus it owns in Santa Clara.
8-Year Deal
The eight-year lease is valued at more than $25 million and doubles the amount of space for Infloblox, which raised about $98 million in a well-received IPO about two months ago. The company’s products improve the performance of data centers used by large companies and government agencies.
Infoblox—which was formed in 1999 and has a market value of about $825 million—will be moving about 2 miles from its existing headquarters. The new lease starts next February.
The annual rent for the space runs from about $3.2 million to $3.9 million, with monthly rents maxing out at monthly rates of about $2.58 per square foot, according to regulatory filings.
Infoblox has the option to extend its lease for an additional five years after the initial lease expires at the end of 2021, according to the company.
The deal comes as Bixby was wrapping up a $10 million redesign to the two-building campus on Coronado Drive, which is located a few blocks from the 101 Freeway.
Improvements
Improvements to the property, which began late last summer, included adding a two-story glass pavilion to connect the two buildings at the campus, the addition of a new courtyard lounge and other tenant-friendly amenities.
The environmentally friendly redesign also added about 10,000 square feet to the Santa Clara project.
“We set out nine months ago to redesign the project for a user such as Infoblox that required a collaborative, highly efficient, highly amenitized work environment,” said Bill Halford, Bixby’s president and chief executive.
“The fact that the lease was signed literally as we finished construction speaks to the functional, contemporary sense of space that the project conveys, and to the growing demand for high-quality work environments by tenants,” Halford said.
Bixby and its investment partners have owned the Santa Clara office complex for nearly four years since paying a reported $36.4 million, or about $307 per square foot, for the buildings in late 2007.
Bixby owns about 1.2 million square feet of buildings in the Silicon Valley, one of the tighter office markets in the U.S. Its total portfolio runs about 5 million square feet.
Another Renovation
Bixby also is renovating a 164,000-square-foot, three-building office campus on River Oaks Parkway in San Jose’s Golden Triangle area, which it bought about a year ago.
The company is putting about $11 million into the renovation of those buildings, which Bixby paid about $19.5 million for last July. That renovation project is expected to be completed next month.
