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Downtown Sunnyvale Development Enters New Phase

The next phase of the Downtown Sunnyvale development is underway. On Jan. 27, Sunnyvale city leaders joined developers to break ground on the Cityline Block 3 North office project.

The development includes three new buildings – two seven-story office towers and a 12-story apartment community. The buildings will be built on the site of the former Macy’s, which was demolished late last year.

“Downtown Sunnyvale is already seen as a destination, and these new office and residential towers will be a welcome addition to this thriving area,” said Sunnyvale Mayor Larry Klein. “Our entire community will be able to enjoy the many existing and future amenities and businesses. It has been a pleasure to watch our downtown continue to evolve over the last few years, and I am excited for what’s to come.”


When completed, the office towers will include bottom floor retail space. The apartment complex will create 479 new housing units, including 53 affordable homes.

In addition to the buildings, the Cityline Block 3 North development will include the creation of a public park that utilizes the existing redwood trees to create a town square and gathering space.

If all goes well, the construction is expected to be completed by late 2024.

For several years now, Sunnyvale, in conjunction with Sares Regis Group of Northern California (SRGNC) and Hunter Storm, has worked tirelessly to redevelop the area surrounding Historic Murphy Avenue.

“Looking back at our progress over the last five years, we are grateful for the opportunity to transform this community in such a profound way—from delivering a new grocery store and movie theater to reconfiguring the heart of downtown itself, much has been accomplished,” said Drew Hudacek, Chief Investment Officer at SRGNC. “We’re excited to begin this stage of downtown Sunnyvale’s transformation.”

A majority of the apartments and condominiums built in previous phases of the Cityline construction are already filled. Retail spaces are also filling up.

Road Runner Sports opened on West McKinley Ave. near Taaffe St. in late January. The company says the location in Downtown Sunnyvale was ideal for the growth of its business.

“We felt Sunnyvale would be the best location to serve more customers in the local area in addition to our Campbell and San Carlos stores,” said Road Runner Sports Director of Customer Acquisition Sean Peterson. “This new development has such tremendous potential, and the area is brimming with energy and excitement. We knew this would be a perfect fit for so many reasons, and we’re beyond excited to make Sunnyvale our new home.”

In addition to Road Runner Sports, several other retail locations are expected to open soon. Flat Stick Pub, a combination restaurant, bar and miniature golf course, has already signed a retail lease.

Other large retailers such as Salon Republic and Ulta Beauty join Target, Whole Foods and AMC Theaters as anchor stores within the area.


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