TMG strikes deal with Samsung for Cypress site

News & Awards.

TMG Partners has won awards for many projects
including honors for “Best Mixed Use,”
“Best Office,” and “Best Historic Rehabilitation”.

September 21, 2012
San Francisco Business Times
TMG strikes deal with Samsung for Cypress site

It turns out that San Francisco-based TMG Partners is not only crushing it in San Francisco, but in Silicon Valley as well.

In a joint venture with Farallon Capital Management, TMG Partners has reached a 15-year build-to-suit deal with Samsung Information Systems America Inc., a Samsung Electronics subsidiary, for a new campus at Cypress Business Park. The project is at 625-685 Clyde Avenue in Mountain View. Studios Architecture of San Francisco is the architect, and Devcon Construction is the general contractor.

The research and development center will relocate from its current facility in North San Jose to the 8.5-acre site and expand to two new six-story class-A office buildings totaling approximately 385,000 square feet, with parking structures. The new facility will be oriented around a central plaza with views overlooking the adjacent Sunnyvale golf course.

The building will be constructed to LEED Gold standards. Entitlements are in process and anticipated for completion in the second quarter of 2013 with a targeted occupancy in the fourth quarter of 2014.

Matt Von der Ahe and Hyoung Chon-Yeun, both of CBRE, represented the tenant.

TMG Partners has completed 2 million square feet of sales deals in the last year or so, most recently selling 680 Folsom St. to Boston Properties in a stock and cash transaction valued at $340 million, which works out to about $650 a square foot. The city currently assesses the property at $70 million, presumably the number that Rockwood/TMG bought it for.

On top of that is the $170-million construction loan that the sellers secured to transform it from an obsolete, concrete telephone building into a modern, glass-skinned office building designed by Skidmore Owings & Merrill.

Early in the year, TMG and DivcoWest sold 1275 Market St. to Dolby for about $110 million, having bought it a year before for $44 million.

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