San Mateo Offices Poised to Become Housing

Tourbineau Real Estate Partners is looking to turn a recently acquired office property in San Mateo into housing.

The Seattle-based firm has filed an application to turn a 121,144-square-foot office building at 2121 South El Camino Real into a 156-unit multifamily community, Multi-Housing News reported, citing The Registry. The building is part of Tower Plaza, a five-building complex including the 12-story office structure, that Tourbineau bought from TPG Real Estate Trust in June for $22 million total.

The entire property spans 202,014 square feet, though the 12-story office tower is the only building at the complex planned for conversion. The remaining four one- to two-story office buildings will stay open and continue operating as they do now.

Tourbineau’s purchase of the 3.4-acre property marked the firm’s first acquisition in San Mateo. At the time, it was floating various mixed-use reimaginings of the complex, including apartments and hotel uses. The company viewed the property as “an empty slate,” CIO Ben Wong told the San Francisco Business Times. “This was the one [property] we were most excited about.” In June, Tower Plaza was nearly 80 percent vacant — a sign of the Bay Area’s high post-pandemic office vacancy rate as companies downsized or went remote entirely.

Tourbineau plans to build studio, one- and two-bedroom apartments averaging 553 square feet. Of the 156 units, 15 percent will be set aside for income-restricted housing. Residents at the building will have access to amenities like a lounge, a gym and landscaped courtyards. It will also get an architectural makeover including a new modern facade with energy-efficient window systems. TCA Architects is handling designs for the project.

TPG Real Estate Trust, the former lender for the complex, seized the property last year after previous owner Rialto Capital Management defaulted on a $75.8 million loan. The $22 million sale price marked a 71 percent drop from the $77.3 million Rialto paid for it in 2019.

Earlier this year, Tourbineau broke into another new market — Nashville — with similar conversion plans. The firm bought the Parkway Towers office building for $12.5 million and with plans for either residences or a hotel.

— Chris Malone Méndez