LOS ALTOS — A South Bay housing development that would produce well over 100 homes, including dozens of affordable residences, has landed a crucial loan to finance the project’s construction.
The proposed residential complex would sprout in Los Altos on a busy stretch of El Camino Real that is near multiple major tech hubs in Silicon Valley.
San Mateo-based
Prometheus Real Estate Group, the project’s developer, owns the property
, which is at 5150 El Camino Real.
Prometheus, a veteran Bay Area real estate firm, aims to build 196 residences, of which 29 would be affordable, according to documents on file with Los Altos officials.
The development consists of two five-story buildings along El Camino Real that would contain 172 residential units and 24 townhomes away from the main street. All of the units are slated to be rental dwellings, the city planning files show.
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Prometheus has landed an $80 million construction loan from JPMorgan Chase, according to documents filed on June 13 with the Santa Clara County Recorder’s Office.
The construction funding paves the way for Prometheus to develop the housing project, which would rise on a 3.8-acre property two miles from the Googleplex campus in Mountain View and four miles from Stanford University.
In 2021, a Prometheus affiliate paid $48 million for the development site, county real estate records show.
When the project was first proposed and then approved by Los Altos city officials, the development seemed to be a sure bet. The project was expected to create a big housing development in proximity to major tech hubs.
Instead, the proposed housing was stalled for years after a $42 million loan to finance the property became delinquent.
The project’s original developer, Dutchints Development and that company’s principal executive, Vahe Tashjian, obtained the loan in 2018 to finance their purchase of the development site.
An affiliate controlled by Dutchints Development and Tashjian, however, defaulted on the loan in 2021.
The loan delinquency, which occurred in 2021, triggered a legal battle in Santa Clara County Superior Court over the property’s fate and ownership.
In 2021, a Santa Clara County judge issued a court order that cleared the way for Prometheus Real Estate Group to buy the property. The proceeds from the purchase were used to pay off the lender on the original loan that became delinquent.
In 2024, Prometheus bulldozed an office building that had occupied the site for years as a prelude to the actual construction of the housing.
The 196-unit housing development is expected to feature some gathering areas and open spaces, as well as a pool area, the development plans show.
