Ellis Partners Breaks Ground on Renovation of Pruneyard Mixed-Use Center in Silicon Valley

by Katie Sloan

Campbell, Calif. — Ellis Partners has broken ground on the multi-phased renovation of The Pruneyard, a 27-acre mixed-use shopping center in the Silicon Valley city of Campbell.

The Pruneyard contains 365,000 square feet of Class A office space, 253,000 square feet of retail and restaurants, and a 170-room Doubletree Hotel. The infill project has not been updated for nearly 20 years. It is located at 1875. S. Bascom Road in the West Valley community. Ellis Partners purchased The Pruneyard from Equity Office Properties for $280 million in 2014.

“The Pruneyard has been a premier West Valley office location for businesses large and small for over four decades,” Jason Morehouse, partner and director of acquisitions at Ellis Partners, said at the time of acquisition. “With strategic investments in the site and the adjacent retail center, we believe we can further bolster the value proposition for our nearly 85 office tenants by creating an even more robust and dynamic retail and entertainment amenity package.”

At the time of acquisition, the three-building office component had average in-place office rents that were about 30 percent below market value with substantial near-term rollover in a rising market. The hotel component previously operated as an independent boutique brand that had been partially upgraded and re-branded by Hilton just before the acquisition. The shopping center component, which was built in 1969, was also stabilized at the time of acquisition.

The Pruneyard’s shopping center currently contains more than 15 restaurants and 35 retail shops, services and entertainment businesses. Notable tenants include Camera 7 Cinemas, Marshall’s, Rock Bottom Brewery, Buca di Beppo and Trader Joe’s.

Ellis Partners, a San Francisco-based privately owned commercial real estate investment and development company, carried out a similar renovation at the Town and Country Village in nearby Palo Alto. The multi-year renovation was undertaken in 2014 while maintaining full operations at the center.

—   Nellie Day

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