America Center Phase II was leasing at the same time as five other properties nearby, which were all constructed within two years of each other and offered the same core amenities - dining, fitness, outdoor space, and good freeway visibility. Each offered at least one whole building in the 170,000-300,000 SF range and was asking between $35-50 rent, with America Center II falling right in the middle. After touring the competitors, Hewlett Packard selected America Center II because it would provide a better employee experience and align with the company’s vision to create technology that makes life better for everyone.
After touring the competitors, Hewlett Packard Enterprise selected America Center II for its headquarters, and will move 1,000 employees there. America Center landed its anchor tenant in only four months, compared to the competitors’ average of 15 months. The faster lease up is worth $8M to Steelwave at $40 market rent.
Steelwave also achieved design and construction benefits as a result of View Dynamic Glass. In order for the original building to meet California’s stringent Title 24 Energy Code, the window area would have had to be reduced, decreasing its market appeal, or Steelwave would have had to change the HVAC to a Variable Refrigerant Flow (VRF) system, an additional $600,000 cost. By using View Dynamic Glass instead of static glass, the buildings will save 150,000 kWh per year, a 9.5% energy reduction. The buildings are projected to achieve an 99 Energy Star Score based on the EPA’s Target Finder.
Hewlett Packard Enterprise is an American multinational information technology company headquartered in Palo Alto, California. USAA Real Estate was founded in 1982 as the real estate investment arm of USAA, with more than $18 billion in assets under management. The Teacher Retirement System of Texas is the largest public retirement system in Texas, serving more than 1.5 million members, and with $134 billion in assets under management. Steelwave is a full-service real estate company and investment management firm that has acquired, developed or managed over $10.7 billion of multifamily, industrial and office product across the Western United States in the past 45 years.