Hundreds of residences poised to replace Sunnyvale tech buildings

SUNNYVALE — Hundreds of homes could replace a Sunnyvale tech campus in a fresh example of a conversion of workspaces to living quarters at a time when the Bay Area office market remains wobbly.

The project at a site with addresses that include 510 and 920 De Guigne Dr. would produce 370 residential units, consisting of 329 primary for-sale units and another 41 accessory dwelling units, according to documents on file with city planners.

In 2024, a Tidewater Capital affiliate paid $65 million to buy the tech campus, Santa Clara County real estate records show. Tidewater is also leading the housing development effort.

“The proposed project includes land uses, densities, and a project design that contributes towards an improved quality of life, a more balanced jobs-to-housing ratio, and minimizes sprawl,” Sunnyvale city planners wrote in a staff report.

Some city residents, however, questioned whether the project would worsen traffic.

“De Guigne Drive is already a significant thoroughfare,” Sunnyvale resident Lei Duan wrote to city planners. “Adding the vehicle load of over 360 new households will drastically increase traffic density.”

Other residents said the project will occupy land that should be considered for other uses such as retail.

“North Sunnyvale has long faced underinvestment and still lacks full-service grocery stores,” Christina O’Guinn wrote in an email to city planners. “Demand for restaurants and other essential retail will only continue to increase.”

The Sunnyvale Planning Commission approved the project on Feb. 23 in a 6-0 vote.

A growing number of office sites are being envisioned or approved as housing development complexes because numerous office properties have become financially unviable.

“We know we have a housing crisis,” Sunnyvale Planning Commission Chair Nathan Iglesias said. “I commend the variety of product. It’s innovative to include the ADUs.”