NorthMarq Capital’s San Francisco office completes $103 million refinance of Madrone Apartments in Mountain View, California

SAN FRANCISCO (January 13, 2017) – Jeffrey Weidell, president, Nathan Prouty, managing director and Andrew Slaton, vice president of NorthMarq Capital’s San Francisco-based regional office, arranged the $103 million refinance of Madrone Apartments, a 272-unit, class “A” multifamily property located at 111 North Rengstorff Avenue in Mountain View, California. The transaction was structured with a 10-year term with 5-years of interest only, followed by a 30-year amortization schedule.

NorthMarq arranged financing for the borrower, Prometheus Real Estate Group, through its correspondent relationship with TH Real Estate, an operating division of TIAA Global Asset Management, one of the largest real estate investment managers in the world with $96.2 billion in assets under management. Madrone Apartments is a class “A”, fully modernized multifamily community that benefits from its location in the heart of Silicon Valley. It is conveniently located near major employers, two downtown corridors, regional shopping destinations, parks and recreation, top-rated schools, two Caltrain stations and major freeways. Located within two miles are the Googleplex, Downtown Mountain View, Mountain View Caltrain Station, San Antonio Caltrain Station, and The Village at San Antonio Center – a major shopping and dining hub anchored by Safeway.

Built in 1962, Madrone underwent extensive renovations in 2008 and 2014. The latest phase of renovations involved the demolition of 50 existing units and the addition of 134 new units, bringing the total number of units from 188 to 272. Cosmetic upgrades were also made to the existing asset design to match the sophistication of the new construction. These changes included modernizing the existing decks & patios, expanding the fitness center, making further upgrades to the clubhouse, and enhanced landscaping. Community amenities include high speed internet access, heated pool with oversized deck and separate spa, fully equipped fitness center, reserved parking, park-like grounds with picnic/BBQ area, a modernized clubhouse with fireplace and kitchen facilities and a TZ Parcel Locker System.

“Our connection with TH Real Estate, a long-time correspondent life insurance company relationship of NorthMarq’s, stepped-up and beat out the competition through a combination of loan proceeds, interest-only, prepayment flexibility and ability to lock rate at term sheet,” explained Slaton. “We lucked-out on fixing the rate before the recent run-up in the treasury yields. The closing went smoothly on this unique, well-run community in Mountain View.”