Prometheus Lands $105M New York Life Loan on Madrone Apartments
Prometheus Real Estate Group reportedly refinanced the 272-unit Madrone Apartments in Mountain View with a $105M, five-year interest-only New York Life loan.
Prometheus Real Estate Group, the Bay Area housing developer and not the artificial intelligence firm of the same name, has refinanced the 272-unit Madrone Apartments at 111 N. Rengstorff Ave. in Mountain View with a $105 million loan from New York Life, according to a November 9 trade-press report. The report credits Northmarq’s San Francisco team with arranging it. We have not yet located the recorded deed of trust, so the terms below are as reported.
Why it matters
Large, long-term institutional debt on Silicon Valley apartments is a signal of lender appetite for stabilized Peninsula rental assets. A five-year, full-term interest-only structure from a life insurer suggests the lender is underwriting steady rent income rather than a lease-up. It also gives the owner room to add units without a near-term maturity.
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The numbers
The reported loan is $105 million over five years, interest-only for the full term. About $90 million repays existing debt that Northmarq arranged in 2016, per the report. By our arithmetic that leaves roughly $15 million of proceeds beyond the payoff, before costs. The report says the loan also supports eight accessory dwelling units that the owner plans to build after closing. Eight units on a 272-unit base would add about 3% to the community, and the report does not break down how the remaining proceeds will be used. The report does not give a rate or loan-to-value.
What’s next
The ADU construction is described as planned, not permitted or underway, and the report names no city approvals or timeline. A recorded deed of trust with Santa Clara County would confirm the amount, lender and date; we will update this story if that record surfaces. For more Peninsula and South Bay deal flow, see our San Francisco market coverage.
Quick answers
- Who is financing Prometheus in San Francisco?
- Prometheus Real Estate Group reportedly refinanced the 272-unit Madrone Apartments in Mountain View with a $105M, five-year interest-only New York Life loan.
- What are the key numbers for Prometheus Real Estate Group?
- Life insurer loan: $105M; apartment units: 272; planned ADUs: 8.
- Where does the information on Prometheus Real Estate Group come from?
- The story cites Multifamily & Affordable Housing Business.
On the record
Net proceeds of roughly $15M above the existing payoff, and eight planned ADUs that would add about 3% to the 272-unit count, are our arithmetic on the reported loan terms
Our data · multifamilyaffordablehousing.com
Also reported by
- Multifamily & Affordable Housing BusinessNorthmarq arranges $105M refinancing for Madrone Apartments in Silicon Valley