Wells Fargo Provides $145M CMBS Loan for Silicon Valley Office Complex

Prometheus Real Estate Group has secured a $145 million loan to refinance The Towers at Cupertino City Center, a two-building, recently renovated office center in Cupertino, Calif., in Silicon Valley, according to a release.  

Wells Fargo provided the debt, structured as a single-asset, single-buyer (SASB) commercial mortgage-backed securities (CMBS) loan, while Northmarq’s San Francisco debt and equity team of Nathan Prouty, Andrew Slaton and John Holt arranged the transaction. 

Prouty acknowledged in a statement that office market capital has been “selective,” but that The Towers at Cupertino City Center has benefited from a recent infusion of tenant improvement spending, plus long-term leases and a location within the famed Silicon Valley tech corridor. 

“This transaction demonstrated that lenders will engage for assets with strong fundamentals and a compelling business plan,” he added. 

Located at 20400 Stevens Creek Boulevard in Cupertino, The Towers opened in 1989 and were completely renovated in 2022 to bring the offices more in line with modern architecture. The complex now includes pass-through lobbies and an outdoor pedestrian corridor that links the two L-shaped buildings.  

Other amenities in the renovated office buildings include a fitness center, a swimming pool and electric vehicle charging stations. The complex’s tenant list includes Morgan Stanley. 

Eron Kosmowski, senior vice president at Prometheus Real Estate Group, said in a statement that his firm was able to secure the $145 million refinance due to the asset’s location, coupled with its tenancy record and Prometheus’ reputation as an office sponsor. 

“Our recent capital investments in The Towers were focused on ensuring the property continues to meet the needs of innovative Silicon Valley companies,” he added. 

Brian Pascus can be reached at bpascus@commercialobserver.com.