Northmarq secures $119 million for the refinancing of two San Francisco Peninsula apartment communities

SAN FRANCISCO (Oct. 4, 2023) — Northmarq’s San Francisco Debt + Equity team arranged for a combined $119 million in financing on behalf of Prometheus Real Estate Group for Park Place South Apartments in Mountain View, California and Boardwalk Apartments in Santa Clara. The Prometheus—Northmarq relationship has spanned well over thirty years. The Northmarq team was led by Nathan Prouty, senior vice president—managing director, and Andy Slaton, senior vice president, with the support of analysts, Dan Whelan and Andrew Deaver. 

“The life companies were competitive on pricing and were able to beat out the agencies on loan proceeds, rate and interest only,” Prouty said. “One of the life company executions allowed the sponsor to lock the rate immediately on a simple term sheet during extremely volatile times in the market.” 

“This was an interesting time in the market for financing, with a fair amount of price discovery, inconsistent lender feedback and volatility on both micro and macro levels,” Slaton said. “The attractive terms we were able to get were really a result of running a thorough marketing process, leveraging competitive feedback from across our national platform and proactively addressing and mitigating lender concerns around local market dynamics. Active, aggressive and creative lenders remain in the marketplace despite developing headwinds and discouraging headlines.” 

Prometheus Real Estate Group is a renowned multifamily developer and operator with over 13,000 apartment units in their portfolio spanning the west coast with a strong presence in the Bay Area. The Northmarq team assisted in the refinance of the two apartment communities totaling 368 units with approximately 6,500 sq. ft. of ground floor retail. 

“We are excited to close the refinancings of these two quality apartment communities with a best-in-class manager and operator in Prometheus,” added Slaton. 

Northmarq canvassed the market across agencies, life companies and banks to track down the most attractive options in the market. The Northmarq team ultimately leveraged its correspondent life company relationship to win the business and structured two 10-year fixed rate deals with 7-years of interest only. View Northmarq’s financing services here.