The Pruneyard

The Pruneyard is an iconic Silicon Valley in-fill mixed-use project combining over 618,000 SF of office and retail with a 171 room Double Tree by Hilton hotel in the affluent West Valley community of Campbell.

When acquired by Ellis Partners, the 365,000 square foot three-building office component was well-leased with the average in-place office rents approximately 30% below market with substantial near-term rollover in a rising market. The 253,000 square foot shopping center was developed in 1969 and was also stabilized. The hotel, previously operated as an independent boutique brand, had been partially upgraded and re-flagged by Hilton shortly prior to the project purchase.

All three components of the project presented the opportunity for upgrade, enhancement and/or tenant mix and revenue improvement. And while each of the three uses were in a distinct area of the 27-acre site, all three sat on one legal parcel. Through collaboration with the City of Campbell and the Campbell community, the Ellis team created a thorough set of CC&R’s and a Master Use Permit that gave the City the comfort it needed to allow for a parcelization of the site and to contemplate disparate ownership by use type to optimize the capital investment and operations in each component of this iconic property. 

Ultimately, Ellis Partners was able to transfer ownership of the renovated and repositioned retail center to a national REIT, the hotel to a hospitality-focused operator and the office to an office focused Bay Area real estate fund.