“Transit-oriented projects have become increasingly desirable in urban in-fill markets, particularly in the traffic-congested San Francisco Bay Area where rush hour can easily double commute times in a car,” Prouty tells GlobeSt.com. “For example, the 25-mile commute from San Carlos to downtown San Francisco can become an hour-long drive which equates to the same time one might spend on Caltrain where they might catch up on work or relax on their way into the office.”

Apartment amenities include stainless-steel dishwashers, refrigerators, ranges and microwaves; patios/balconies, washers and dryers, keyless entry systems, Elfa closets, outdoor living space, LED lighting, NEST thermostats and EV charging stations. Community amenities include a Think Tank conference room, rooftop deck with al fresco dining, controlled access, Wifi in common areas, outdoor pool and lounge area, reserved parking spaces, Hub by Amazon 24/7 package pickup and a fitness center.

“This was a complex transaction on a property with four of eight buildings still under construction, on a ground lease, with significant commercial space and the NorthMarq team was able to close in a very short timeframe,” notes Eron Kosmowski, vice president of finance for Prometheus. “We appreciate what it took to pull this off and are very happy with the manner in how it got done. It was a real concerted effort by a group of creative and solution-oriented people to navigate an incredibly complex transaction with no shortage of moving parts.”

While the transit-oriented nature of this project was a factor in getting the loan done, quality of sponsorship between the two developers and Fannie Mae, along with the desire for new housing in the market were the main drivers behind the success of this financing, Prouty tells GlobeSt.com.

The tremendous growth of tech industries, including semiconductors, social media and cybersecurity, has underpinned an exceptional economic expansion for more than a decade, according to a recent report by Marcus & Millichap. Fueled by median home prices well out of reach of the average metro resident, these conditions have generated a severe housing shortage throughout the Bay Area. Developers have mostly focused on locations in North and Central San Jose along the VTA lines and urban Santa Clara. This year, the largest completion will be the second phase of Santa Clara Square, where more than 850 units will become available, joining retail and office space just off US 101.

Despite considerable and rising supply growth with overall deliveries reaching a new cycle high this year, vacancy has remained extremely tight, below 4% metrowide. Average rents have soared, particularly in more affordable areas such as North San Jose and Milpitas, where monthly rates have risen nearly 50% in five years. Increasing supply will likely cause minor upticks in vacancy in the short term, yet the overall lack of housing in the metro will support rental gains throughout the year, according to the report.