Developers, CalPERS form Bay Area infill joint venture
Silicon Valley | San Jose Business Journal
Written by Staff Writer
November 14, 2006
AGI Capital and TMG Partners have formed a joint venture with California Public Employee Retirement System to develop urban-infill housing in California with an emphasis in the nine Bay Area counties.
The two San Francisco-based developers and the nation's largest public pension fund will be investing $100 million in equity into the venture which will be named AVANT Housing LLC.
It's expected AVANT will use the capital to develop about $400 million in properties throughout California.
"This infusion of capital and partnership with CalPERS provides us with many new opportunities to develop strategically in the Bay Area and throughout California," said Alexis Wong, AGI Capital president and chief executive officer.
"As TMG is already developing projects with both AGI and CalPERS, we foresee seamless progress in the expansion of our strategy," added Michael Covarrubias, TMG Partners chairman and chief executive officer.
The target investment for the new venture will be to create a variety of housing, including for sale, for rent, rehabs and ground up properties with a focus on moderate market rate housing.
Wong and Covarrubias will direct AVANT as co-chief executive officers, along with a board of directors, which will include Eric Tao, executive vice president and investment officer, AGI Capital; and, Cathy Greenwold, executive vice president and director of development, TMG Partners.