TMG, Fortress Sell 3 California Office Buildings for $122M

San Francisco-based TMG Partners and New York-based Fortress Investment Group have sold its remaining properties at Champion Station in San Jose, California to an institutional real estate investor for $122 million,or about $435 per square foot, according to the deed on the sale of the property. Eastdil Secured represented both the sellers and the buyer, which goes by the name TCSP LLC and is an entity related to Michael Milken, according to county records. The three buildings totaling 287,371 square feet were the final properties to be sold off in an eight building portfolio that TMG and Fortress purchased from Cisco Systems in 2013. The transaction's sale price in 2013 was not disclosed, but multiple sources said the cluster of buildings was expected to trade in the neighborhood of $190 per square foot, or roughly $154 million.

"North San Jose, and its amenity-rich environment, continues to attract technology companies both locally and internationally," said David Cropper, TMG Partners Director of Development. "Our strategy at Champion Station had been to complement the mixed-use campus setting with onsite improvements designed to encourage innovation, collaboration and healthy lifestyles for prospective tenants and their employees. Our ability to secure quality tenants and to close this final transaction is proof positive of the demand technology tenants have for health-driven offerings, coupled with the amenities of nearby residential, retail, entertainment and transportation options."

The three buildings at 190, 210 and 230 West Tasman Drive were leased last year to tech companies Silver Spring Networks and ForeScout Technologies are are currently 100% occupied. Cropper told GlobeSt.com: "All the new tenants at our renovated Champion Station have been drawn to the location, our thoughtful renovations and access to the amenities that make the community here so livable. Hence they are all high-quality companies whose employees demand these benefits that inspire collaboration and innovation."

For more news and information visit Blumberg Partners.

Redwood City ISO Optimistic Developers

Redwood City, CA has been active in recent months in moves to draw new developers into the area to expand downtown and increase foot traffic. On January 24 the city approved the "Downtown Precise Plan" which included potential future City projects; now developers are beating a path to complete design proposals due October 17th to build large-scale projects with office space, market-rate housing or even an upscale hotel on a long strip of city-owned land now used for downtown parking near the Caltrain station according to a Mercury News article.

"People are more optimistic," said David Cropper, managing director for TMG Partners, a San Francisco based real estate development firm. "There's capital that wasn't there for real estate and demand that wasn't there two or three years ago. The city said we want a new downtown and it (the plan) makes it less difficult; they don't have to guess what the city wants," he said. "Redwood City is a county seat and it's got historic buildings and some charming buildings. It's the last great downtown on the Peninsula."

Despite a 25% vacancy rate in Redwood City, Dan Zack, Redwood City's downtown development coordinator, said he expects developers to submit project proposals that will be worth "tens of millions and may perhaps go past $100 million."

For more news and information visit Blumberg Capital Partners.