Principal JV brings ‘green’ offices to Silicon Valley

The property investment arm of Principal Financial Group has partnered with a local developer to raise two LEED-certified office developments in California’s tech hotspot.

Principal Real Estate Investors and California-based developer The Martin Group have formed a joint venture to develop two office projects in California’s Silicon Valley.

The venture “will allow us to create a number of well-located and well-designed office buildings that will fill a valuable niche in the central Silicon Valley market,” said Principal managing director of acquisitions and asset management Rod Vogel in a statement. Both developments will be designed to meet LEED certification from the US Green Building Council.

The venture’s first development will be located in Moffett Business Park at 399 West Java Drive, adjacent to the Yahoo! headquarters and the Valley’s mass transit rail line. The building will comprise 200,000 square feet of Class-A high-tech office space. It is slated for completion in 2010.

The second project, located in Sunnyvale, California at 384 Santa Trinita Avenue, will comprise 100,000 square feet of Class-A high-tech office space. The development is also set to be completed in 2010.

The Golden State’s dot-com district has seen a profusion of investor activity in recent weeks. Last month, LaSalle Investment Management paid $115 million (€76 million) for the five-building Montague Park office and research and development complex in Silicon Valley’s Golden Triangle from a joint venture between Westbrook Partners and Four Corners Properties. Foster City, California-based Legacy Partners also recently acquired the $126-million, 355,000-square-foot Hamilton Plaza office complex from property investment and operating company Seagate Properties.