Veteran home builder Prometheus buys Los Altos housing development site for $48M

Prometheus Real Estate Group purchased the 3.8-acre property at 5150 El Camino Real

San Francisco /
Oct.October 18, 2021 11:16 AM
A previous rendering of 5150 El Camino Real in Los Altos with Prometheus CEO Jackie Safier (Rendering via Borelli Investment Company, Safier via Getty)
A previous rendering of 5150 El Camino Real in Los Altos with Prometheus CEO Jackie Safier (Rendering via Borelli Investment Company, Safier via Getty)

A Los Altos residential project that has struggled to secure financing has a new owner and is set to bring much-needed housing to the area.

Veteran homebuilder Prometheus Real Estate Group bought the 3.8-acre property at 5150 El Camino Real, MercuryNews reported. The site, two miles from the Mountain View Googleplex campus, was approved for a high-density housing project in 2019.

Prometheus paid $48 million for the property, the majority of which will be used to pay off the property’s mortgage to Loancore Capital Credit. The property was sold by an affiliate of Dutchints Development that paid the same amount for it in 2018.

Judge Christopher Rudy (Photo via Arnold Law Firm)
Judge Christopher Rudy (Photo via Arnold Law Firm)

The sale will offer a return on investment for some, but not all of the investors. Santa Clara County Superior Court Judge Christopher Rudy ordered that Loancore, which provided the mortgage, be paid first, followed by the architect and a broker who was involved with the purchase.

The project has been in default since March 2021, when Dutchints Development failed to repay the mortgage according to the terms of the loan agreement.

Some of the smaller investors of the project had a chance to get their money back when another homebuilder struck a preliminary agreement for the property. KB Homes agreed to pay $60 million for it earlier this year — enough to pay off the loan as well as smaller investors. However, KB Homes abruptly pulled out of the deal, leaving Prometheus as the only interested buyer.

Judge Rudy did negate some of the liens and judgments on the property, which means that investors can’t “capture” any more money from the deal.

[Mercury] — Victoria Pruitt





    Related Articles

    arrow_forward_ios
    A rendering of 434 Minna Street (Meyers Plus)
    Applications pour in for middle-income units in new SF apartment building
    Applications pour in for middle-income units in new SF apartment building
    The grant is a part of California Gov. Gavin Newsom’s Homekey initiative (Getty Images, Booking.com, iStock)
    California grants $22M to turn Santa Clara hotel into interim homeless housing
    California grants $22M to turn Santa Clara hotel into interim homeless housing
    SummerHill Homes' Alexander Mehran, Sr. and Alexander Mehran, Jr. with Bishop Ranch (SummerHill Homes)
    SummerHill Homes spends $108M on 31 office park acres in San Ramon
    SummerHill Homes spends $108M on 31 office park acres in San Ramon
    Which Silicon Valley city had the biggest rent increases in 2021? (iStock)
    SF tenants head to the South Bay, pushing rents to double-digit gains
    SF tenants head to the South Bay, pushing rents to double-digit gains
    An ADU at 288 Union Street (Redfin)
    Wealthier San Francisco neighborhoods building more ADUs
    Wealthier San Francisco neighborhoods building more ADUs
    320 Day Street (Compass)
    SF’s “worst house on the best block” sells for $2M
    SF’s “worst house on the best block” sells for $2M
    From left: Ann Silverberg of Related California; Ener Chiu of the East Bay Asian Land Development Corp. (Related California, EBALDC, Google Maps, iStock)
    JV plans Oakland project with upwards of 600 affordable homes
    JV plans Oakland project with upwards of 600 affordable homes
    Bay Area realtors expect prices to keep setting records in 2022 (iStock, Illustration by Kevin Cifuentes for The Real Deal)
    Bay Area agents expect another year of record-setting prices
    Bay Area agents expect another year of record-setting prices
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...