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Lender Assumes Stake in Million-SF Campus

REDWOOD CITY, CA-Despite being rocked by the bankruptcy of major dot-com tenant, a Bay Area developer negotiates an agreement making its lender a joint-venture and equity partner and allowing it to continue owning and operating a one-million-sf office/R&D campus.

By Randyl J. Drummer | Updated on January 07, 2003

REDWOOD CITY, CA-Despite being rocked by the bankruptcy of major dot-com tenant, Bay Area developer TMG Partners has negotiated an agreement making its lender Credit Lyonnais a joint-venture and equity partner. The deal allows TMG to continue owning and operating Mid-Point Technology Park, a one-million-sf office/R&D campus.

Mid-Point comprises 13 buildings fronting Highway 101 in Redwood City. San Francisco-based TMG acquired the 1960s-era former Ampex manufacturing and research site in 1995 an proceeded to renovate many of the existing buildings and obtain entitlements to build an additional 500,000 sf.

The entire campus was completed and fully leased to a variety of technology-related tenants by 1998. The following year, two of its largest tenants merged and became Excite@Home. During 2001′s high-tech shakeout, Excite@Home filed bankruptcy, leaving 600,000 sf vacant.

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