NEWARK, N.J. – Prudential Huntoon Paige has closed a $42.3 million blended rate loan to both refinance an existing mortgage and construct a new addition on Palo Alto Commons in Palo Alto, Calif.  Prudential Huntoon Paige is the FHA-insured lending business of Prudential Mortgage Capital Company, the commercial mortgage lending business of Prudential Financial, Inc. (NYSE:PRU).

Palo Alto Commons is a 117-unit assisted living facility located at 4075 El Camino Way in Palo Alto, Calif. The loan was closed with a 457-month fully-amortizing term and a fixed interest rate of 3.28%.   The loan refinances an existing FHA-insured loan and also finances the construction of an additional 44 assisted living units. When completed, the development will be a 161-unit, 185-bed facility that is licensed for an additional 90 beds in a new wing.

This project is unique in that the existing building will not be structurally affected by the new addition. Instead, the addition will be connected via walkways to the existing structure, and yet remain a standalone building.
 

“The growing demand for high quality senior housing in this region along with the ongoing success of this property makes Palo Alto Commons an attractive transaction for Prudential Mortgage Capital Company,” said Martin Herz, a principal with Prudential Huntoon Paige. “We are pleased to have been able to provide the borrower with the unique blended rate financing needed to make this project a reality.”

 

Prudential Mortgage Capital Company is a national full-service, commercial and multifamily mortgage finance business with more than $72 billion in assets under management and administration as of June 30, 2012. Leveraging a 135-year history of real estate finance, the company offers one of the most comprehensive lines of real estate finance products and originates loans for Fannie Mae DUS®, Freddie Mac Program Plus® and specialized affordable housing programs; FHA; Conduit; Prudential’s general account and proprietary balance sheet program; and other institutional investors. The company maintains a loan servicing portfolio of approximately $69.2 billion, as of June 30, 2012. For more information, please visit http://www.prumortgagecapital.com.
 

Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $961 billion of assets under management as of June 30, 2012, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/