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.
2.2 MSF Silicon Valley R&D Portfolio

Extensively renovated, 87% leased, Class A mission-critical R&D properties include 50 buildings on 140 acres

TMG PARTNERS, GROVE, AND LONE STAR FUNDS ACQUIRE 2.2-MILLION-SQUARE-FOOT SILICON VALLEY R&D PORTFOLIO FROM WASHINGTON HOLDINGS

SAN FRANCISCO/SILICON VALLEY -- (September 1, 2026) – TMG Partners, one of the San Francisco Bay Area’s largest mixed-use property developers, and Grove Real Estate Partners, a multidisciplinary commercial real estate investment firm, in a joint venture with Lone Star Funds  (“Lone Star”), today announced the acquisition of Washington Holdings’ Class A R&D portfolio, the largest and most cohesive institutionally owned 2.2-million-square foot compilation of predominantly single-story research and development product in Silicon Valley.

TMG and Grove will be the operating partners of the 2.2-million-square-foot, six-project portfolio spanning 140 acres across Santa Clara, San Jose, and Milpitas, all within Silicon Valley’s highly desirable Golden Triangle submarket.

“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 TMG Partners Co-CEO Ben Kochalski. “Silicon Valley’s R&D inventory has declined nearly 20% since 2003, and new development remains economically unfeasible given today’s land and construction costs. This portfolio’s combination of scale, specialized infrastructure, and irreplaceable Golden Triangle locations gives us a durable, high-quality income stream today and significant long-term upside as the world’s most important technology ecosystem continues to grow.”

The portfolio is approximately 87% leased to a diverse roster of 63 tenants spanning the semiconductor, medical device, telecom, data security, and automation/AI industries, with a weighted average lease term of 3.3 years. Over its ownership, Washington Holdings invested approximately $173 million ($87 per square foot) into base building, exterior, and interior renovations across the portfolio, resulting in high tenant retention and reduced capital requirements going forward. The specialized, mission-critical nature of the R&D improvements, including clean rooms, semiconductor wafer fabs, data centers, and wet labs, creates meaningful tenant investment and operational dependency on the space, further supporting occupancy and retention.

The compilation of properties sits within the Golden Triangle, a transit-oriented submarket formed by the intersection of Highways 101, 237, and Interstate 880 and anchored by Santa Clara, North San Jose, and Milpitas. The submarket is home to headquarters and major R&D footprints for companies including NVIDIA, Intel, Cisco, Broadcom, Samsung, TSMC, PayPal, and Apple, and has added approximately 8,000 residential units since 2010 to support its workforce. With no new R&D development economically feasible given current land and construction costs, the portfolio is well positioned to benefit from continued rent growth and long-term covered land value.

"This portfolio is purpose-built for the structural shift we’re seeing across Silicon Valley, where breakthroughs in AI are accelerating advances in physical technologies, from robotics and semiconductors to advanced manufacturing," said Chris Eldemir and Beau Heidrich, Co-Founders and Managing Partners of Grove. "We look forward to leveraging our operating and leasing expertise alongside TMG Partners and Lone Star to elevate the tenant experience across these campuses and support the region’s most impactful companies." 

The portfolio comprises six campuses:

Mission Park R&D, a 500,338-square-foot, 12-building campus on 33 acres in Santa Clara that includes a 73,000-square-foot standalone data center, an on-site retail center anchored by Mendocino Farms, and a 175-room Element by Westin hotel, situated adjacent to the NVIDIA, Intel, and Oracle campuses

Montague Square, a 251,155-square-foot, six-building project on 15 acres at the corner of Montague Expressway and North First Street, steps from the Orchard VTA light rail station

North First @ Orchard Station, an entirely single-story, 266,846-square-foot, six-building campus on nearly 17 acres that is 96% leased

Montague Oaks, a 295,003-square-foot, eight-building campus on 18.5 acres that includes a 5,000-amp Verizon (MCI Metro) telecom switch facility sited atop a critical fiber intersection

Zanker Place, a 141,947-square-foot, four-building campus on 9.4 acres near PayPal’s headquarters and Google’s Brokaw campus

Tasman Tech Center, the largest asset in the Portfolio at 736,756 square feet across 14 buildings on 47 acres in Milpitas, recently renovated with new landscaping, a tenant fitness center, three restaurants, and 15 EV chargers

Exclusively advising Washington Holdings, the Eastdil Secured team included Managing Directors Stephen Van Dusen and Nate Jones, Senior Vice President Kurt Chong, and Associate Will Crummey, with Managing Director Matt Haden and Director Jim Castignani advising on financing. Brokers from four teams representing the buyers in the transaction include: Newmark’s Mike Saign, Jeff Arrillaga, Joe Kelly, and Grant Meylan; CBRE’s Chris Shepherd, Christian Marent, Mark Christierson, Sherman Chan, Bob Steinbock, and Joey McSweeney; Colliers’ Craig Fordyce and Mike Rosendin; and Cushman & Wakefield’s Colin Feichtmeir, Gregory Davies (now with JLL), Steve Horton, and Kelly Yoder.

About TMG Partners

TMG Partners, founded in 1984 and headquartered in San Francisco, is one of the Bay Area’s largest and most active mixed-use property development and management companies. TMG has developed or acquired more than 35 million square feet across every major city in the region, including Oakland, San Francisco, Marin, and San Jose. The $6.8B portfolio includes a broad spectrum of office, retail, residential, and industrial properties, ranging from office campus and multi-story properties in urban-infill locations to mixed-use and single-story suburban buildings. Throughout its four decades of leadership in civic organizations, TMG has invested in the Bay Area’s growth and cyclical reinvention across housing, office, and retail. For detailed information, visit TMG Partners. LinkedIn

About Lone Star

Lone Star is a leading investment firm with its principal office in London, UK advising funds that invest globally in private equity, credit and real estate. The firm has been successfully navigating complex situations for over 30 years. The funds are experienced value investors that seek opportunities in situations that are in flux or complicated by specific structural or financial factors, regardless of the prevailing market environment. Our deep bench of senior leaders and expert deal professionals ensures a strong foundation for successful investments and strategic decision-making. Since the establishment of its first fund in 1995, Lone Star has organized 26 private equity funds with aggregate capital commitments totaling approximately $96 billion. For more information regarding Lone Star Funds, go to www.lonestarfunds.com. Follow us on LinkedIn.

About Grove

Grove Real Estate Partners is a San Francisco Bay Area–based real estate investment firm specializing in commercial and multifamily properties. Founded in 2025 by Chris Eldemir and Beau Heidrich, Grove combines institutional rigor and deep local market knowledge with an entrepreneurial, owner-operator mindset. Grove's team has more than 30 years of real estate investment experience, including in excess of $5 billion in transactions. For more information, visit www.groverep.com.

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