Details Emerge on TMG and Farallon Sale of Samsung Build-To-Suit

TMG Partners, Farallon Capital Management, San Francisco, Bay Area, Samsung Electronics, commercial real estate, Samsung Research America

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EDITOR’S UPDATE:

The sales price on the Samsung Headquarters building was close to $650 per square foot or $250.2 million, according to sources familiar with the property. Construction on this development was started in September/October of 2013 and was completed at the end of 2014. The development cost of the project was approximately $200 million. TMG had purchased this property located at 665 Clyde Avenue in 1998. At that time it was a 120,000 square foot building occupied by two tenants. This campus was on of the first new projects to be developed as part of the 2030 General Plan for the city of Mountain View.

SAN FRANCISCO (May 5, 2015) – TMG Partners, one of the San Francisco Bay Area’s largest mixed-­‐use property developers, in partnership with Farallon Capital Management, today announced the sale of the 8.5-­‐acre campus in Mountain View, Calif. to Samsung Electronics.

The newly constructed 385,000-­‐square-­‐foot facility includes two, six-­‐story Class A office buildings and two garages plus one acre of open space. The project achieved the LEED Platinum certification rating for Core and Shell.

The Partnership leased the property to Samsung in 2012, prior to obtaining entitlements, as a build-­‐to-­‐suit with a 15–year lease term, which provided Samsung a purchase option after completion. Samsung exercised the option and now owns the property.

“We are extremely pleased to have had this opportunity to create a world-­‐class headquarters in Mountain View for Samsung,” said Michael Covarrubias, chairman and CEO of TMG Partners. “The project is a great example of cooperation between the City of Mountain View, Samsung and the neighborhood.”

“TMG Partners exceeded our expectations and was a great partner helping Samsung to achieve our corporate real estate objective of locating our research and development engineers in a state-­‐of-­‐the-­‐art facility,” said Marc Ketzel, Vice President of Samsung Research America. “Ultimately, TMG completed the project under budget and ahead of schedule. We are very proud to now be a part of this thriving community and provide our employees a fantastic work environment.”

Rocky Fried, managing member at Farallon, said ”We were gratified to partner with TMG to develop and improve this world-­‐class property that we believed, in time, would be attractive to a world-­‐class organization like Samsung.”

TMG’s Samsung project included founding the Mountain View Transportation Management Association and leading the launch of the new MVgo shuttle system that provides free last mile rides to Mountain View employment campuses and Caltrain.

The design and construction team included Studios Architecture as lead project architect, the Guzzardo Partnership as landscape designer, and Devcon Construction as general contractor. SOM designed the interiors.

About TMG Partners
TMG Partners, founded in 1984 and headquartered in San Francisco, is a full-­‐service real estate development and management company. TMG has developed more than 23 million square feet of property throughout the San Francisco Bay Area, including Emeryville, Marin City, Novato, Palo Alto, San Bruno, San Jose and San Francisco. One of the most active developers in this area in the last decade, the company has developed a variety of office, retail, residential and industrial properties, ranging from office campus and multi-­‐story properties in urban, infill locations to mixed-­‐use retail and single-­‐story suburban buildings. For detailed information, visit: www.tmgpartners.com

About Farallon Capital Management
Farallon Capital Management, L.L.C. is a global institutional asset management firm founded in 1986. Farallon manages approximately $19.5 billion for institutions, including college endowments, charitable foundations and pension plans, and for high net worth individuals. Farallon employs approximately 180 employees. Farallon is headquartered in San Francisco and has offices in London, Singapore, Hong Kong, Tokyo and Sao Paulo. Farallon is currently investing capital for Farallon Real Estate Partners, which targets income-­‐producing office, multifamily, retail and industrial properties. More information about Farallon may be found at www.faralloncapital.com