Multifamily - Debt

NorthMarq lends $336 million on Prometheus's Mansion Grove Apartments in Santa Clara, California

SAN FRANCISCO, CALIFORNIA (February 19, 2020) – NorthMarq San Francisco finished the year strong closing a $336 million loan through their Fannie Mae lending arm on Mansion Grove Apartments, a 1,000-unit community (built in 1988) in Santa Clara, California. 

The borrower is Prometheus Real Estate Group, a renowned multifamily developer and operator with a high quality portfolio spanning the west coast and a strong presence in the Bay Area. Considered a market leader in the Bay Area debt and equity space, NorthMarq approached a variety of capital sources for the refinancing and Fannie Mae well-surpassed the competition by sizing the deal aggressively and offering a low-3 percent fixed rate on a 10-year interest only term. 

According to Nathan Prouty who led the NorthMarq San Francisco team, “This loan represented a significant return of equity following a period of substantial investment in capital improvements by a borrower. Prometheus has always held this project up as one of their most prized holdings and the attention to detail and pride of ownership are clearly evident. NorthMarq has been involved with the financing of Mansion Grove since the construction of the original phases in the late 1980s and thrilled to have been able to deliver on this Fannie execution.”  

The Prometheus-NorthMarq relationship goes back well over thirty years and the NorthMarq team was led by Nathan Prouty, managing director and Andrew Slaton, senior vice president with the support of analysts, Griff Whitlock and Jackie Goldsmith. NorthMarq’s in-house Fannie Mae team was instrumental in negotiating a winning deal and closing the year-end transaction in just three weeks. The loan is serviced by NorthMarq as part of their $61 billion loan servicing portfolio. 

Prometheus developed Mansion Grove in the late-1980’s when the area was still dotted with orchards. The initial development was 876-units built in three phases. The sprawling 29-acre site provided enough space to build 124 new units 2010, bringing the total unit count at 1,000 and making it the largest single asset in the Bay Area, and by far the most valuable garden-style community with a valuation of over half a billion dollars. Mansion Grove’s Rivermark neighborhood includes retail and dining, parks, great schools, a public library, apartments, condos, townhomes and single-family houses. 

Property amenities include: Dishwasher, granite countertops, microwave, oven, range, refrigerator, freezer, high-speed internet access, washer/dryer in-unit, air conditioning, fire place, double pane windows and assigned parking.

Apartment amenities include: Cabana, waterscapes/gardens, pool, controlled access, maintenance on site, online services, balcony/patio, fitness center, basketball/tennis courts and a pet-friendly policy. 

In addition to Fannie Mae, NorthMarq is also a lender for Freddie Mac, FHA/HUD, CMBS, banks, and most of the major life insurance companies. With nearly 40 offices in key markets, NorthMarq is the largest privately owned mortgage banking firm. Beyond debt & equity they continue to expand their multifamily investment sales platform, as evidenced by nearly $2 billion of sales transactions in 2019, and are focused on adding a team in the Bay Area. NorthMarq’s San Francisco office placed $2.3 billion of the company’s $12.3 billion total 2019 debt and equity production volume.

Northmarq is a full-service capital markets resource for commercial real estate investors, offering seamless collaboration with top experts in debt, equity, investment sales and loan servicing. We combine industry-leading capabilities with a flexible structure, enabling our national team of experienced professionals to create innovative solutions for clients. Our solid foundation and entrepreneurial approach have built an annual transaction volume of more than $37 billion and a loan servicing portfolio of nearly $76 billion. Through the 2022 acquisition of Stan Johnson Company and Four Pillars Capital Markets, Northmarq introduces clients to expanded opportunities across all major asset classes.