CityLine Sunnyvale Enters Exciting Third Phase of Development
A critical economic development goal for the City of Sunnyvale has been to create a dynamic downtown, a place for civic pride. This long awaited goal is finally being realized as the development of CityLine Sunnyvale is transforming the formerly distresed Sunnyvale Town Center into a vibrant transit-oriented, mixed-use development in the downtown core. Recent construction updates reveal the project keeps hitting exciting milestones. On Jan. 27, 2022 Sunnyvale city leaders joined developer STC Venture, a joint venture between Hunter Storm and Sares Regis Group of Northern California, to break ground on the project's third phase- Block 3. This phase of development includes three new buildings – two seven-story office towers and a twelve-story apartment tower "The Martin" that will include 479 units. The buildings will rise up on the site of the former Macy’s, which was demolished in 2021. The buildings' density allows for the provision of a public park to function as a town square.
Phase Two of the development, "The Flats West" residential building, is open and occupied. It includes seventy five apartment units for rent; while Phase One is also completed and includes substantial retail anchored by Whole Foods and AMC Theaters, along with restaurants Pacific Catch and Urban Plate. Over $20 million in public improvements, including the extension of historic Murphy Avenue and opening of Redwood Square, have been invested. The residential component oh Phase One, "The Flats", is a 198-unit apartment complex built over 100,000SF of ground floor retail. Both apartment buildings include affordable units.
KMA was retained by the City to conduct a market and fiscal analysis of the developer's proposal to ensure the proposed mix of land uses was realistic and met the City’s economic development objectives. KMA also prepared a financial pro forma analysis to inform the City's negotiations for a Development Agreement, which culminated in approval for up to 817 residences, 709K SF of office and 642K SF of ground-level retail. Prior to this, Keyser Marston also assisted the City in the selection of the development team.
The CityLine Sunnyvale project is emerging as an economic development success story as the City of Sunnyvale finally has a unique and vibrant downtown for people to live, work and play. The 36-acre development, featuring a healthy and dynamic mix of residential, retail, office and a public plaza, is located within blocks of a Caltrain station.