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MOUNTAIN VIEW, CA-Prometheus Real Estate, one of the largest private owners of apartments in the Bay Area has padded its Mountain View portfolio with North Park, a 188-unit apartment complex for which it paid approximately $47 million. Built in 1962, the low-density garden-style apartment complex sits at the corner of North Rengstorff Avenue and Central Expressway, a mile or so from both Google’s corporate headquarters and the 101 Freeway.

The purchase price equates to $250,000 per unit and $355 per sf. Prometheus executive John Milham says his company will sit on the property for up to 24 months while it decides whether to substantially renovate the asset or scrape and redevelop the site with 210 for-sale townhomes, a project for which it already has been entitled. “We’re sort of wait and see,” he says.

The seller was Newport Beach-based Lyon Apartment Cos., a unit of Lyon Capital that was represented by Arroyo & Coates founder Curtis Gardner and fellow A&C brokers Mark Leary and John Downing. Due to its redevelopment potential, pure residential developers had the property under contract prior to Prometheus but could not close the deal, according to sources familiar with the property.

Milham says one of the risks in the deal is that the condo map for the townhomes has not yet been recorded. Prometheus used a five-year loan to acquire the property. Advantageously, debt rates fell 110 basis points while the company had the property under contract, Milham says.

Vacancy at the complex rose significantly over the last year as tenants were told that the property was likely to be shut down and redeveloped. “We’re in the process of re-tenanting,” Milham says.

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