A joint venture between Pacific Development and PGIM Real Estate has obtained a $97 million construction loan to begin work on Madrone, a 15-acre, 396-unit mixed-income housing development located in Santa Rosa, Calif. California Bank & Trust, Comerica Bank and First Hawaiian Bank provided the financing. The project is scheduled to break ground later this week.
Madrone is the first part of a three-phase, 35-acre master planned project that will span 800 units at full build-out. It will include a combination of for-sale single family homes, Class A apartment rentals and retail outlets. The master plan, which the city approved in November 2024, will be the largest mixed-housing project in Santa Rosa in more than two decades.
Madrone’s 396 garden-style apartments, 20 of which will be below-market rate, will include a mix of one-bedroom, two-bedroom and three-bedroom units. The community will have 661 surface parking spaces to be shared among residents, guests and retail visitors, 323 of which could be used to charge eclectic vehicles.
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Phase 2 of the master plan will include 98 detached for-sale homes, and Phase 3 will bring 276 additional garden-style apartments with 555 parking spaces. Amenities will include a community garden, clubroom, fitness center, pool, spa, dog park and tot lot, along with co-working and barbeque areas.
Sitting on the site of a former dairy farm, the development is located along Guerneville Road and Lance Drive, within walking distance of Whole Foods and Coddingtown Mall.
JLL Capital Markets negotiated the deal.
Another team-up for Pacific Development and PGIM
Madrone is the latest collaboration between Pacific Development and PGIM Real Estate. The two firms, along with Comerica, CB&T and Bay West Group’s Bill Poland, opened Launch, a 368-unit luxury apartment complex in Alameda, Calif, in 2023 as part of the Alameda Master Plan. The group will break ground on Phase 2 of the plan later this year.
PGIM has also partnered with other firms on high-profile development ventures in recent months, including Toll Brothers. In March, the partners opened The Lindley, a 37-story luxury high-rise community in San Diego.
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