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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

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.

August 28, 2024

The Mercury News

Mountain View building is bought for $100 million-plus as values flop

by George Avalos

Despite hefty price, deal points to faltering Bay Area office market

MOUNTAIN VIEW — A big Mountain View office building has been bought by an alliance of savvy and veteran investors for more than $100 million in a deal that offers fresh evidence real estate values have withered.

The building, located at 600 Clyde Avenue in Mountain View, was bought for $108.1 million, according to documents filed on Aug. 26 at the Santa Clara County Recorder’s Office.

DivcoWest and TMG Partners, two of the Bay Area’s top real estate firms, acted through an affiliate to buy the office building in an all-cash deal, the Santa Clara County public filing shows. Eastdil Secured, a commercial real estate firm, provided investment expertise for the transaction.

Google pre-leased the building before it was completed. The building totals 190,000 square feet.

Renault & Handley, a veteran real estate firm, developed the 600 Clyde site and landed Google as a tenant for the entire building.

Yet even with Google as a tenant, it appears the building suffers from economic maladies that have begun to afflict a growing number of office properties in the Bay Area.

In May 2023, Google put the building up for sublease, part of the search giant’s ongoing efforts to right-size its office space in the Bay Area and nationwide.

In January 2024, the building had a value of $188.4 million, according to the latest estimate from the Santa Clara County Assessor’s Office.

This means the purchase price was 43% below what the Assessor’s Office estimated was the building’s value as of January 2024.

Record-high vacancy levels, feeble rental rates, a contracting tech sector and a growing number of foreclosures have created an ominous landscape for Bay Area office buildings.

The Bay Area office market has become so weak that developers have largely lost their appetite for major new projects unless they can land a tenant before construction begins.