California CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
TMG Finalizes New PG&E HQ Acquisition with Rockpoint-Swig JV
San Francisco-based TMG Partners acquired 300 Lakeside, a signature 28-story Class A office building on Oakland’s skyline that was originally developed as the headquarters for Kaiser Industries in 1960, for $450 million. The sellers were a JV between San Francisco-based The Swig Company and Boston-based Rockpoint Group.
TMG also entered into a long-term lease to relocate PG&E’s HQ from downtown San Francisco into 600,000 square feet at 300 Lakeside initially. The utility will eventually occupy the entire 1-million-square-foot, office complex in the thriving Uptown District as existing leases expire.
TMG Partners’ Matt Field says, “This was a very complicated transaction executed in a time of unprecedented economic disruption involving a headquarters lease and purchase option, a complex joint venture with the seller, a significant scope of building renovation, and a large-scale financing.”
The lease includes a $892-million purchase option for PG&E to acquire the asset from TMG Partners in 2023. Eastdil Secured represented the sellers and helped the buyer arrange financing, which is being led by KKR. The sellers are investors in the new TMG ownership entity.
For comments, questions or concerns, please contact Dennis Kaiser
*This story was updated with the sales price on 11.2.
- ◦Sale/Acquisition
- ◦Lease
