SoftBank strikes big deal in Menlo Park with Stanford University and John Arrillaga

MENLO PARK — Two low-key — yet legendary — Silicon Valley development titans, Stanford University and John Arrillaga, have teamed up to provide a lease to tech giant SoftBank.

SoftBank has signed a lease for 130,000 square feet of offices in Menlo Park on a site whose land is owned by Stanford University and whose office buildings are being developed by Arrillaga, according to at least four commercial property sources, including multiple sources with direct knowledge of the hush-hush transaction.

The leases are in the office portion of Middle Plaza, a mixed-use office, retail, and residential development in Menlo Park that was proposed by Stanford University. Arrillaga has agreed to develop the office buildings in the property, according to city officials and several realty sources who are familiar with the deal.

The office lease was arranged through Newmark Knight Frank, a commercial real estate firm. Stanford University didn’t respond to this news organization’s requests for comment. SoftBank declined to discuss the situation.  Arrillaga and his development partner Richard Peery have not commented about property transactions for a number of years.

One unusual facet of the leasing deal: The buildings were pre-leased two full years before construction is slated to be complete, expected for sometime in 2021 or 2022.

Another remarkable element of the transaction, according to the sources: The per-square-foot value of the lease, on a monthly basis, is $10 — which puts it among the most expensive office leases in the Bay Area, ever.

In a web post, Stanford University did say that the project is being built on an 8.4-acre site in Menlo Park with addresses that include 200, 300, 400, and 500 El Camino Real. The development fronts on El Camino Real and is between Roble Avenue and Harvard Avenue.

“The new project will include 215 one- and two-bedroom rental units, open space for families and friends to spend time, select office spaces, and features architecture that complements Menlo Park’s character,” the university stated in the web post.