Bluerock Buys Sunnyvale Office Building for $330.7M in Sale-Leaseback Deal

An affiliate of New York-based asset manager Bluerock has purchased a Class-A office building at 1133 Innovation Way in Sunnyvale for $330.7 million. The transaction includes a long-term leaseback agreement with tenant Juniper Networks running through 2047. Hewlett Packard Enterprise, which acquired Juniper Networks last year for $14 billion, sold the property as part of its broader real estate management strategy while retaining ownership of the adjacent facility at 1137 Innovation Way.

Bluerock financed the acquisition with a $310 million loan coordinated by Wilmington Trust. The eight-story asset spans 319,000 square feet near Moffett Field, putting the sale price above $1,000 per square foot.

While broad Peninsula office vacancy reached 23.8% in the second quarter of 2026, Silicon Valley office vacancy stood lower at 16%, according to Kidder Mathews. The deal highlights that institutional capital remains willing to pay premium valuations for Bay Area office assets backed by long-term commitments from investment-grade corporate tenants.