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 40 years. As much as we have accomplished over the last four 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 four 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 & Co-CEO

As the Bay Area’s economy has grown over the last four 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 FieldCo-CEO

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 40 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 &
Executive Vice President

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
Close

Close

 

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.
The Mercury News
The Mercury News
Investors place big real estate bet on Silicon Valley’s future
By George Avalos

SAN JOSE — Betting big on Silicon Valley’s future, an investment group led by an England-based firm paid hundreds of millions of dollars for six tech campuses in three cities, according to several grant deeds filed in Santa Clara County in September.

“We see significant opportunity in this portfolio given the strong tailwinds across the business landscape right now in Silicon Valley,” said Jerome Foulon, global head of commercial real estate with London-based Lone Star Funds, which led the buying group for the sites.

The buying group headed up by Lone Star paid roughly $650 million for the six tech campuses, based on the combined current value of the properties, stated a spokesperson for the new ownership group for the properties. The prices in the official grant deeds were based on what the six sites were worth prior to the nosedive in office and research building values.

The current price for the South Bay portfolio represented a significant discount to the publicly recorded combined value of $1.16 billion for the six properties, as disclosed in separate grant deeds for each campus.

“This is really positive for Silicon Valley,” said David Sandlin, an executive vice president with commercial real estate firm Colliers. “All the indications are that the market is going to get stronger.”

London-based Lone Star Funds acquired 2.2 million square feet across six campuses, 50 buildings, and 140 acres in the Golden Triangle, an area roughly bounded by U.S. Highway 101, State Route 237 and Interstate 880. The tech campuses are in San Jose, Milpitas and Santa Clara. Bay Area-based real estate firms TMG Partners and Grove are the operating partners for the portfolio’s new owner.

“The new owners are likely going to reap a lot of benefits from that portfolio,” Sandlin said. “These are quality, functional buildings.”

The current values for the six campuses weren’t disclosed by Lone Star. But the grant deeds for each property reflected the prior values for the sites.

Montague Oaks in North San Jose had a $300 million value. The eight-building campus totals 295,000 square feet on 18.6 acres with addresses ranging from 627 to 655 River Oaks Parkway.

North First @ Orchard Station in North San Jose was valued at $210 million. The six-building, 17-acre site totals 266,800 square feet and has addresses that include 41 Daggett Dr.

Mission Park, a 12-building Santa Clara complex, had a prior value of $195 million. The 33-acre office and research park totals 500,300 square feet. The site includes a data center that totals 73,000 square feet, a retail hub and a 175-room hotel.

Montague Square in North San Jose was previously valued at $186 million. The 15-acre, six-building campus totals 251,200 square feet and is at the corner of Montague Expressway and North First Street.

Tasman Tech Center in Milpitas had a $176 million value. The 14-building, 47-acre office and research hub totals 736,800 square feet. Its addresses include 1450 McCarthy Blvd., 540 Alder Drive and 700 Tasman Drive.

Zanker Place, a four-building office center at 1920 Zanker Road in North San Jose, had a previous value of $96 million. The complex totals 142,000 square feet. The Google Brokaw campus and the PayPal headquarters are nearby.

The properties acquired by Lone Star Funds are 87% leased, according to TMG Partners and Grove. Washington Holdings was the seller in the deals.

“This acquisition represents a rare opportunity to secure the most cohesive assemblage of mission-critical R&D space in Silicon Valley in a single transaction,” said Ben Kochalski, co-chief executive officer with TMG Partners.