SAN FRANCISCO—TMG Partners' exclusive $150 million separate account allows the firm to invest in value-add commercial real estate developments in the Bay Area. The venture will ideally acquire approximately $470 million in real estate properties. Product types will include office, R&D, residential and mixed use. TMG will have complete discretion over acquisitions, management and dispositions in the venture.
Michael Covarrubias, chairman and CEO of TMG Partners, tells GlobeSt.com: "This is a great opportunity for us at TMG to deploy capital in off-market transactions that we can source, having developed relationships throughout the Bay Area for our 32 years."
In this joint venture, TMG is more seamlessly able to accelerate focus on the residential and commercial components of its 30-year history, and with one primary partner. New York-based Park Madison Partners sourced the capital from a single international institutional investor. TMG will also continue to grow relationships with existing and new partners as larger deals warrant co-investment relationships.
“Investors today are increasingly looking to joint venture directly with best-in-class local operators, and we believe TMG is the ideal partner for investors in the San Francisco Bay Area,” said Gentry Hoit, a partner at Park Madison Partners.
The new JV will offer the flexibility to expand during future cycles, allowing for more financial dexterity during a downturn in order to take advantage of buying opportunities.
“The off-market and quick-reply opportunities will be specific targets for these funds,” said Matt Field, TMG's chief investment officer. “We are excited about the opportunities we now have, offering even more creativity in the execution of our business plan.”
Covarrubias adds, “In a continuation of our strong performance with our partners—particularly during the 2006 to 2014 cycle—we believe it is time for a direct financial relationship wherein we will have an additional vehicle for investment discretion, and we're grateful for the trust and confidence our new capital partner has placed in the TMG team.”
As previously reported, TMG Partners and Alexandria acquired 505 Brannan earlier this year.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
