Sunnyvale Office Property Secures $61.5 Million Loan
The 125,000-square-foot office building at 285 Sobrante Way enters a new chapter with fresh refinancing.
Updated on Oct. 27, 2026 in Commercial
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Mesa West has provided a $61.5 million loan to refinance the office building at 285 Sobrante Way in Sunnyvale. LBA Realty, which acquired the 125,000-square-foot property in June 2025, secured the funding for the asset.
Why it matters
The financing reflects a shift in the local office market as demand for Class A space tightens in Sunnyvale. With no recent new deliveries of similar space, the property stands to benefit from a growing regional technology sector.
The 125,000-square-foot property at 285 Sobrante Way was purchased for $42.3 million in June 2025. Current Class A office availability in the region sits at 11 percent as of the second quarter of 2026.
The players
Mesa West
An institutional lender focused on providing commercial real estate debt for high-value properties.
LBA Realty
A real estate investment firm that manages and acquires commercial office assets.
JLL Capital Markets
A global real estate services firm that arranges financing and investment sales for commercial properties.
The details
The property, which originally opened in 2021, previously entered receivership following a default on construction debt by SteelWave and Principal Real Estate Investors. The new financing was arranged by a JLL Capital Markets team including Kevin MacKenzie, Peter Thompson and Spencer Bergthold. The building serves the high-demand Silicon Valley technology market.
Timeline
The office asset first opened in 2021.
LBA Realty acquired the property in June 2025.
Regional Class A availability reached 11 percent in Q2 2026.
Mesa West finalized the refinance loan in October 2026.
The Home Front
This refinancing marks a notable turnaround for the 285 Sobrante Way site following its previous stint in receivership. It highlights the continued absorption of Class A office inventory as the region experiences a lull in new commercial building deliveries.
Homeowners in Sunnyvale should note that the stabilization of local commercial assets can influence broader property tax assessments and regional economic growth. Keep an eye on local planning board meetings for future discussions regarding commercial zoning and development impacts.
The takeaway
The successful refinancing of this property signals confidence in the long-term demand for high-end office space in Sunnyvale. Residents can monitor local commercial activity as a proxy for the health of the technology-driven business climate in the area.
Further reading
Learn more about local real estate trends at Sunnyvale Commercial.
Source note: This article includes information reported by Commercial Observer.
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