A languishing former hardware store in Sunnyvale could be headed for residential redevelopment after a Florida-based real estate firm bought the site.
An affiliate of Miami-based Millrose Properties purchased the 5.2-acre site at 777 Sunnyvale Saratoga Road, once an Orchard Supply Hardware, in an all-cash deal for about $44.3 million, the Mercury News reported. The seller was local firm Mardit Properties. The deal works out to $8.5 million per acre.
Sunnyvale city officials already approved plans for 242 residential units at the site, consisting of 162 apartments and 80 townhomes. The development application was filed by San Jose-based developer Valley Oak Partners. The proposal also calls for a two-level parking garage and 2,000 square feet of ground-floor retail space.
Orchard Supply Hardware closed all of its stores in 2018. Some of its sites were bought by retailer Outdoor Supply Hardware, while real estate developers bought other locations.
Even Google owns one of the former locations, in downtown San Jose. That store was within the tech giant’s proposed transit-oriented neighborhood development, which hasn’t started construction though it’s been in the works for years.
Millrose Properties often provides homebuilders with a capital flow for efforts to build residential projects. New Home Company Northern California, for example, has an option to buy the property from Millrose, though the full terms of the option agreement have not been disclosed.
The construction and homebuilding markets are struggling nationwide this year amid high interest rates and tariff uncertainty.
Elsewhere in the Bay Area, Millrose Properties bought an 11-acre, three-building office campus at Bishop Ranch in San Ramon earlier this year from developer Sunset Development for $50 million. Trumark Homes plans to redevelop the site into nearly 200 residential units, including 67 single-family homes and 128 attached townhomes.
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