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Prometheus Closes on $123M Financing

REDWOOD CITY, CA-The locally based private multifamily investor and developer refinances four properties in the region with a 10-year loan from ARCS Commercial Mortgage of Calabasas. The loan has a fixed rate in the mid 5% range and requires only interest payments for the first several years.

By Brian K. Miller | Updated on January 19, 2006

REDWOOD CITY, CA-Prometheus Real Estate Group Inc. has closed on $123.4 million in financing for four of its multifamily properties in the region. ARCS Commercial Mortgage Co. of Calabasas provided the funds.

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.”

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