The financing was originated by ARCS' San Francisco office through Fannie Mae's Fixed Rate loan product. The 10-year deal will be repaid interest only for the first five years at a fixed rate of 5.39% for all four loans. A 30-year amortization begins in the sixth year.
Prometheus' VP of finance and asset management John Ghio tells GlobeSt.com the move to refinance the properties "was really due to the flattening of the yield curve, which makes long-term money cheap, which best fit how these properties are being positioned. Also, the interest-only feature in the loans makes the defeasance manageable."
The properties are the Lake Biltmore Apartments, Heatherstone Apartments, the Boardwalk Apartments, South Shore Beach & Tennis Club Apartments. They are located in Cupertino, Mountain View, Santa Clara, and Alameda, respectively, and hold a combined total of 985 units.
Lake Biltmore Apartments was constructed in 1972 on 10.12 acres. Community amenities include in-ground heated pool and spa, playground, fitness center, clubhouse and open landscaped areas between buildings including ponds and water features.
Heatherstone was constructed in 1974 on 9.2 acres. Community amenities include four pools, spa, five tennis courts, basketball/sport court, and a large clubhouse that contains a fireplace and kitchen, fitness center, billiards area, sauna, aerobics studio and shower facilities.
South Shore was constructed in 1974 on 9.2 acres. Community amenities include four pools, a spa, five tennis courts, a basketball/sport court, and a large clubhouse similar to Heatherstone. The Boardwalk Apartments was constructed in 1977 on 10.6 acres. Community amenities include a heated swimming pool, spa, playground, fitness center, laundry rooms, and a clubhouse.
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