NorthMarq Arranges $148M Refinancing of Two Office Buildings in Silicon Valley

by Christina Cannon

CUPERTINO, CALIF. — NorthMarq Capital has arranged a $148 million refinancing loan for two office buildings at Cupertino City Center in Cupertino. Prometheus Real Estate Group was the borrower in the transaction. Prometheus developed and still manages the property.

Cupertino City Center is a mixed-use development that consists of five office buildings, three residential projects and one hotel. The two eight-story office buildings, which total 354,770 square feet, are located at 20400 and 20450 Stevens Creek Blvd. The buildings were constructed in the late 1980s.

“They remain the tallest buildings in the market and offer views and a central location no others can,” says Nathan Prouty, managing director with NorthMarq Capital’s San Francisco office.

Community amenities at Cupertino City Center include a fitness facility, swimming pool and amphitheater.

“This mixed-use amenity package is market-leading and rare in this location in Silicon Valley,” says Prouty.

The transaction was structured with a 10-year term and 30-year amortization schedule. Allianz Real Estate of America on behalf of Allianz Life Insurance Company of North America provided the financing.

Major tenants at Cupertino City Center include Apple, Seagate Technology and Morgan Stanley.

“These buildings have been well occupied since they were built,” says Andrew Slaton, vice president of NorthMarq Capital’s San Francisco office. “Given the property’s historical success in attracting tenants, Allianz was able to provide competitive terms for this refinancing with additional proceeds to reflect the increase in value since the original loan was placed.”

Jeffrey Weidell, Nathan Prouty and Andrew Slaton of NorthMarq Capital arranged the financing for Prometheus.

 — Christina Cannon

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