San Francisco, CA – CBRE Capital Markets’ Debt & Structured Finance team has arranged more than $150 million in financing for The Markham Apartments, an 80-building, 504-unit complex in downtown Cupertino, California.
Andrew Behrens and Jesse Weber of CBRE’s San Francisco office arranged the permanent financing on behalf of Prometheus Real Estate Group. The 10-year, full-term, interest-only loan was provided by Fannie Mae and has a flexible prepayment feature.
“The Markham is a unique asset in an extremely desirable location within Silicon Valley,” said Mr. Weber. “It is a Class A+ property with extremely luxurious finishes and amenities; however, it serves the working class community of Silicon Valley that work for the numerous technology companies located nearby because of the extremely high home prices in the area. The unique location and quality of this property, combined with the diverse tenant mix and community makeup is a driving factor in why Fannie Mae felt comfortable providing the loan on the property at the terms offered.”
Eron Kosmowski, Vice President of Finance for Prometheus stated, “CBRE and Fannie Mae’s willingness and ability to utilize a Streamlined Rate Lock program to eliminate the risk of market volatility and interest rate risk was extremely meaningful to our firm. We were able to have our rate locked within a matter of days of signing the loan application and preceded to a smooth loan closing with peace of mind.”
The Markham is located within the Cupertino School District and is just minutes away from Apple, Infosystems, HP and Symantec. The Class A+, garden-style community—which is currently 97% occupied—has a clubhouse with a gourmet kitchen, community room with lounge, junior Olympic-sized pool, a hydrotherapy spa, private theater, business center with Wi-Fi, and fitness center. All units include GE® stainless steel appliances and private, oversized patios or balconies.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.