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.
Image of a outdoor courtyard.
CoStar
Google-Leased Office Building in Silicon Valley Lands Buyer Despite Tech Giant’s Efforts To Offload Space
by Katie Burke

DivcoWest, TMG Partners Team Up To Close $108 Million Purchase at Steep Discount

A pair of local San Francisco Bay Area developers are taking advantage of the region's discounted office pricing with a more than $108 million bet on the market's long-term recovery.

A joint venture between DivcoWest and TMG Partners finalized its all-cash purchase of 600 Clyde Ave., a 190,000-square-foot Silicon Valley office property that Alphabet's Google has been trying to sublease for more than a year. The deal, closed earlier this month, is the latest in a flurry of acquisitions made by smaller, often local investment firms scooping up office properties at fire-sale prices with plans to wait for the market to build itself back from the depths of the COVID-19 pandemic.

Silicon Valley real estate firm Renault & Handley was the seller in the deal for the Mountain View, California, building. The price tag equates to about $569 per square foot, a steep drop compared to the roughly $1,140 per square foot average reported among premium office properties that sold four years ago, according to CoStar data.

Google has been the building's sole tenant since the tech giant, headquartered just a few miles away, preleased the property more than a year before it finished construction in mid-2020.

However, the building was among a handful of office properties the tech company listed for sublease as it looked to slash its footprint across the Bay Area by offloading more than 1.5 million square feet of space it neither uses nor wants. The Clyde Avenue building, which has been marketed by Newmark for the past 15 months, is vacant and available through August 2031.

The impact of flexible work policies and cost-cutting measures among some of the region's largest occupants have combined to push Silicon Valley's availability rate past 25%, well beyond the roughly 5% reported prior to the pandemic's outbreak in 2020.

World's Largest Franchisee Makes Personal Bet on San Francisco’s Office Recovery

Despite Google's offloading efforts, the deal and its discounted price proved enough for both DivcoWest and TMG to place bets on the region's anticipated recovery.

Over the past couple of years, buyers have scooped up dozens of office properties across the San Francisco Bay Area, often paying all cash. That debt-free position has largely been made possible thanks to the decline in pricing compared to pre-pandemic levels, when many buildings in the region were selling at some of the highest per-square-foot levels in the country.

Within the past couple of weeks, a joint venture between San Francisco's Flynn Properties and Ellis Partners paid nearly $40 million to acquire 631 Howard St. in San Francisco, a more than 40% discount compared to what seller Invesco paid about a decade ago.

Los Angeles-based BH Properties recently dropped $13.5 million to acquire 989 Market St., an about 121,000-square-foot building in San Francisco's Mid-Market neighborhood that last sold for nearly $61.5 million in 2014. Software company Zendesk, which had long based its headquarters at the property, is preparing to move out within the next couple of months following a deal to sublease space from Meta over at 181 Fremont St.

The patient capital will be necessary as the region recovers from the blows it endured throughout the pandemic, especially as the tech-concentrated Silicon Valley market slogs through a record amount of available space. Tenants in the Mountain View area over the past year have collectively signed on for just 223,880 square feet of office space, a roughly 24% drop compared to this time last year, according to CoStar data.