SAN FRANCISCO/OAKLAND — (June 8, 2020) – TMG Partners, one of the San Francisco Bay Area’s largest mixed-use property developers, announced today the company has entered into a long-term lease with PG&E to relocate PG&E’s headquarters to 300 Lakeside in Oakland from their current downtown San Francisco headquarters location. The lease includes a purchase option for PG&E to acquire the property from TMG Partners in 2023. The transaction is approved by TMG Partners and PG&E, and is subject to final approval by the Bankruptcy Court.
“We are pleased to assist PG&E as it emerges post-bankruptcy and seeks cost and operational efficiencies,” said Matt Field, President of TMG Partners. “We recognized that 300 Lakeside could provide a transitional opportunity where the company is able to optimize its footprint, phase into the new space in a compact timeline in a location that is easily accessible to a majority of their employees – and understanding Oakland’s continued regional desirability for its central location, transit access, and great community. We worked together to structure the transaction to have a comfortable timeline to renovate the property for PG&E’s workspace and provide the flexibility for the company to elect whether to own or lease their completed headquarters.”
The 300 Lakeside property, a signature building on Oakland’s skyline, was originally developed as the headquarters for Kaiser Industries in 1960 and was designed by noted architecture firm Welton Beckett Associates. The property includes a 1,339-stall parking garage with a rooftop landscaped open space and approximately 130,000 square feet of retail and office space in a two-story building at 344 Thomas L Berkeley Way. TMG Partners will retain ownership of the garage and Thomas L Berkeley Way building.
“Our new Oakland headquarters will be significantly more cost-effective, is better suited to the needs of our business, and is a critical part of fulfilling our commitment to operate in a fiscally responsible way that will enable us to achieve our operational and safety goals,” said Bill Smith, incoming Interim Chief Executive Officer of PG&E Corporation. “Savings from lower headquarters costs will tangibly benefit our customers financially. The move will also bring our employees together in new and better ways in service to our customers.”
The current ownership of the property recently completed major renovations to the building, including elevator modernization, new common areas, a conference center, bike room, tenant lockers and showers, café, and food truck zone. The building also has a conference center with 393-seat auditorium and pre-function area which is used for both tenant functions and third parties. TMG will continue upgrades of the building for PG&E, including the entire process of design, engineering and, with the general contractor, constructing new workspace compliant with PG&E standards.
“The transaction also demonstrates the benefits to the greater Bay Area Region,” said TMG Partners Chairman & CEO Michael Covarrubias. “Oakland gains a new company with PG&E occupying a former corporate headquarters building, built for Kaiser in the 1960s, and the investment will add significant annual property, payroll, and other tax revenue for the City of Oakland. Concomitantly, when PG&E’s current headquarters is ultimately sold and occupied by another company, the City of San Francisco will enjoy significant additional annual property tax and commercial rents tax revenue as PG&E has been an owner-occupant of the property since the construction of the buildings fifty and one-hundred-fifteen years ago respectively. We anticipate that San Francisco will also receive other increases in tax revenues from the sale and re-tenanting of the property.”
About TMG Partners
TMG Partners, founded in 1984 and headquartered in San Francisco, is a full-service real estate development and management company. One of the most active developers in the Bay Area Region, TMG has a portfolio of more than 30 million square feet across Oakland, San Francisco, San Jose, and other Bay Area cities that includes a variety 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. For detailed information, visit TMG Partners.
PG&E Corporation (NYSE: PCG) is a holding company headquartered in San Francisco. It is the parent company of Pacific Gas and Electric Company, an energy company that serves 16 million Californians across a 70,000-square-mile service area in Northern and Central California. Each of PG&E Corporation and the Utility is a separate entity, with distinct creditors and claimants, and is subject to separate laws, rules and regulations. For more information, visit pgecorp.com.