SAN FRANCISCO (Aug. 29, 2012) – TMG Partners, one of the Bay Area’s largest mixed-use property developers, and Rockwood Capital today announced the sale of two San Francisco office buildings located at 680 Folsom Street, 50 Hawthorne Street and the corner site of 690 Folsom in the South of Market (SoMa) area to Boston Properties, a self-managed and self-administered real estate investment trust.
TMG Partners will continue as development manager for the 680 Folsom Street and 50 Hawthorne Street properties and will be responsible for managing ongoing construction at both locations.
When major construction is complete, anchor tenants Riverbed Technology, Inc. and Macy’s.com will occupy the majority of 680 Folsom. Macy’s will occupy 242,753 square feet in the top seven floors beginning January 2014 on a 15-year lease while Riverbed will occupy 202,467 square feet on six floors in a 10-year lease.
“We remain confident in the thriving SoMa revitalization,” said TMG Partners Chairman and CEO Michael Covarrubias. “This transaction maximizes the opportunities for both seller and buyer. When completed, the former Pacific Bell office building, built in 1964 and now under construction, will house a total of 521,610 square feet of Class A office space. Adding to its San Francisco portfolio of premier office properties, Boston Properties is acquiring the 85% leased building before it is completed.”
The 680 Folsom building will be entirely renovated and expanded by two floors. The project will include a new glass curtain wall skin and a new public plaza. TMG is pursuing LEED Gold certification. 50 Hawthorne Street is a 52,000 square foot three-story building and will undergo a similar renovation.
The project was designed by Skidmore, Owings & Merrill and engineered by Tipping Mar Associates. Plant Construction Company will provide all construction services.
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 18 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 Rockwood Capital, LLC
Rockwood Capital, LLC is a real estate investment firm that provides equity capital combined with real estate expertise for repositioning, recapitalization, development and redevelopment of retail, hotel, residential, office and research and development space in key markets throughout the United States. Since 1990, Rockwood and its principals have invested on behalf of their clients approximately $12.0 billion of real estate through eight value-add vehicles and two separate accounts. Today, Rockwood is an 82 person real estate investment firm with offices in San Francisco, CA, White Plains, NY, and Los Angeles, CA and manages a portfolio of approximately $2.4 billion of net equity value in approximately $6.3 billion of gross real estate value. Rockwood’s investors include public and private pension funds, endowments, foundations, insurance companies, fund of funds, high net worth individuals and family offices. For additional information, visit