It’s the way we think
that sets us apart.

TMG Partners has been in the business of developing award-winning, financially-successful, community-based real estate for 39 years. As much as we have accomplished over the last three decades, we believe it is the way we THINK about our region, the risks we manage, the critical timing of our projects and the value we create that sets us apart.
Localism

Real Estate is
a local business.

No, really.

The San Francisco Bay Area is an extremely diverse real estate marketplace with countless micro-business climates teeming with possibility. But you have to be here—and know here—to make the most of the opportunities all around us. Having been exclusively committed to the Bay Area for over three decades, we have developed a keen local intuition which gives us a unique advantage in recognizing both the opportunities and risks in this complex market.
Regionalism

We Think
Mega

If we try to solve our land use problems by focusing only on the nine Bay Area counties, we will fail.

Michael CovarrubiasChairman & CEO

As the Bay Area’s economy has grown over the last three decades, so too has its challenges—particularly related to transportation, housing, affordability and climate change. To plan for growth of 4 million more people in the next third of a century, TMG is thinking bigger, beyond our nine Bay Area counties, and working on longer term strategies to create greater connectivity across our entire megaregion.
Timing

It’s got to work at low tide as well as high tide.

Some of our best deals are the ones we didn’t do.

Matt FieldChief Investment Officer

Almost anyone can make money in a positive economic climate. But it takes discipline, depth of market knowledge and experience in all major product types to know when to buy and when to sell. The most profitable deals can be the ones you decide just don’t make sense or are outbid by an “out of town” competitor. Because we are active in our markets on a daily basis, TMG Partners has managed a portfolio through 39 years of market cycles that works in all phases and has withstood the sands of time.
Vision

huh?

Once it’s obvious, it’s too late.

Cathy GreenwoldSenior Advisor

If you wait for the statistical proof to confirm real estate opportunities, you’re looking backwards. TMG Partners has cultivated an approach to studying the business landscape that reveals market opportunities before they become obvious. Our contrarian investment strategy balances optimism and caution with the intent of turning forward-looking investments into no-brainers.
Returns

Redefining IRR

Our measure for success goes beyond profit.

Lynn TolinChief Operating Officer

Most investment professionals have a clear understanding of IRR: Internal Rate of Return, a purely financial measurement of performance. At TMG we use a different definition. For us, IRR means balancing Integrity, Relationships and Results. We measure every aspect of our business through this lens to ensure our partners, communities, tenants and buyers are treated with the highest degree of respect and responsibility while we consistently deliver superior financial performance.
Think
Localism
Regionalism
Timing
Vision
Returns
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News & Awards.

TMG Partners has won awards for many projects
including honors for “Best Mixed Use,”
“Best Office,” and “Best Historic Rehabilitation”.
In the News. Press Releases. Awards.
San Francisco Business Times
Avant sells Vara for top dollar, Behringer Harvard said to pay $108M
by J.K. Dineen

Apartment investors continue to show a strong appetite for San Francisco, even though the condo market has rebounded and some observers think the city is at risk of becoming oversaturated with rental stock.

This week, Avant Housing closed its sale of Vara (1880 Mission St.) to Dallas-based Behringer Harvard. While the price was not disclosed, sources put it at $108.5 million, which comes out to about $535,000 per unit. The terms of the deal, which closed on July 19, were agreed to six months ago, according to sources.

Brett Betzler and Mary Ann King of Moran Co. represented Avant Housing.

Avant bought the site for $12.5 million and spent about $53 million on construction, for a total investment of about $65.5 million. If the project were to go condo in the current market, the sell out would be approximately $130 million. The additional risks and costs of going condo — marketing, carrying expenses, the inevitable construction-defect lawsuits — probably wouldn’t justify the likely additional upside.

Vara apartments average 770 square feet, ranging from studios to units with three bedrooms and two baths and an optional loft. The apartments feature full-size washers and dryers and condominium-quality finishes including granite or quartz countertops, maple cabinetry and stainless steel appliances. Common-area amenities include a state-of-the-art fitness center, two landscaped courtyards and a Wi-Fi-enabled resident lounge.

“We believe Vara will appeal to young professionals who have been increasingly attracted to employment opportunities in the San Francisco metro area,” said Mark Alfieri, chief operating officer of Behringer Harvard Multifamily REIT I. “The Mission District neighborhood has experienced rapid transformation and gentrification over the last decade as tech companies and incubator firms have moved to the area.”

Of the 8,117 apartment units under construction in the city (or soon to be), nearly 90 percent are owned by REITs or multi-family operators, according to Polaris Pacific. Between 800 and 1,000 of the units are candidates for conversion.

The sale reflects a changing attitude investors have toward neighborhoods like the Mission and Dogpatch, according to Avant’s Eric Tao. About 18 months ago, Avant took the whole apartment portfolio to market, expecting that a single buyer would grab all three as a package.

“We thought somebody who has always wanted to be in San Francisco would want to have close to 700 units in one fell swoop,” he said.

At the time, however, investors were crawling all over the SoMa projects but apprehensive about the Mission, Tao said.

“There was a feeling that it was gritty and challenging,” he said.

Avant took Vara off the market for a while and brought it back in the first quarter of this year.

“By the time we came out in Q1 this year, the comfort level had changed,” Tao said. “The interest level had tripled. We had 15 major national investment groups tour the site.”

“We are happy we sold it — we are going to make an excellent return for our investors, CalPERS,” he said. “But it’s a little bittersweet. It’s like building this awesome car and not getting to drive it.”