LeEco Receives $140M Acquisition Loan for 48.6-Acre U.S. Headquarters Development Site in Silicon Valley

SANTA CLARA, CALIF. — LeEco has received $140 million in first mortgage debt for a 48.6-acre site in Santa Clara in the heart of Silicon Valley. The Beijing-based tech company plans to develop its 3 million-square-foot world headquarters on the site.

LeEco is buying the site, located at 3005 Democracy Way, from Yahoo for $250 million. The property includes several vacant buildings and a parking lot that formerly served the nearby Levi’s Stadium — the new home of the San Francisco 49ers completed in 2014.

Hudson Mesa West SA Democracy Way LLC, a limited liability company managed by Mesa West Capital, and Hudson Pacific Properties Inc. (NYSE: HPP) provided the $140 million loan. Brad Zampa of CBRE’s San Francisco office arranged the financing.

“LeEco is a very dynamic technology firm with exciting plans for the future,” says Brandon Bachner, vice president of Mesa West Capital. “The firm saw this site as a terrific opportunity to develop a global headquarters and plant a flag in the U.S., realizing that having a strong presence in Silicon Valley is pivotal for talent acquisition and continued growth. Our short-term floating rate loan will provide LeEco with enough runway to complete its pre-development plan.”

LeEco will team up with a United States-based partner, who has yet to be named, to develop the property over several phases. The first 1 million square feet of office space is scheduled for completion by 2020.

LeEco opened an 80,000-square-foot office in North San Jose, Calif., this April. The office currently serves as the company’s United States headquarters.

Sometimes referred to as the “Netflix of China,” the movie and video streaming company also manufactures smartphones, televisions and other tech products.

— Katie Sloan

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