Mesa West Capital Provides $122.4 Million in Two Seperate Financings

LA-based portfolio lender to originate more than $1 billion in first mortgage debt in 2011
By: Bruce Beck
 
 
Central_Campus
Central_Campus
Aug. 8, 2011 - PRLog -- In two separate financings, Mesa West Capital has funded loans totaling $122.4 million for the recapitalization of a West Coast office portfolio and the acquisition of a vacant office campus in the Silicon Valley.

Legacy Fund II, a $457.9 million discretionary comingled investment fund of Legacy Partners and new joint venture partner Brookfield Asset Management received $90 million in short-term first mortgage financing from Mesa West to recapitalize a six-property portfolio that included five commercial office buildings and one industrial property.  The new non-recourse loan provided by Mesa West Capital along with additional capital provided by joint venture partner Brookfield was used to purchase the portfolio’s debt back at a discount and put new debt in place to provide more time and capital to continue to stabilize the properties.  Totaling approximately 915,000 square feet, the assets include the Seattle Post Intelligencer Building in downtown Seattle, WA; Stanford Place III in Denver, CO; San Mateo Plaza in San Mateo, CA; and Quadrant Willows Corporate Center Buildings C and E in Redmond, WA.  The assets, which were acquired by the Legacy Fund II in 2007, have a collective occupancy rate of 70 percent.

“These are all highly desirable assets, located in key markets that are benefiting from continued growth in the technology sector,” said Mesa West Principal Steve Fried who originated the financing.  “We’re seeing dramatically improving market fundamentals throughout the tech-heavy regions of Northern California, Washington and Colorado.  Submarkets such as Seattle and San Mateo will benefit from the migration of smaller tech companies looking for space, as large blocks of space are being absorbed by the major players.

In a separate financing, Mesa West provided Rockpoint Group and Presidio Investments with a $32.4 million loan for the acquisition of Central Campus, a vacant 310,671 square-foot office and R&D campus in California’s Silicon Valley.  Located in the City of Santa Clara, Central Campus is comprised of a three-story office building and four one-story R&D buildings.  Acquired by the Boston-based real estate investment firm through its Rockpoint Fund III in January 2011, Central Campus provides an opportunity to finance a high quality asset in a strengthening market at a low basis with strong sponsorship, according to Mesa West Principal Ronnie Gul.

“According to reports, tech employment and leasing activity in the Silicon Valley is the strongest it has been in years, and Central Campus represents one of the few remaining blocks of space in excess of 200,000 square feet in Silicon Valley,” said Gul, who originated the loan.  “The sponsor, which invested a significant amount of equity at closing, plans to aggressively compete for those large tenants,” said Gul.

Central Campus is the second major Silicon Valley asset in Mesa West Capital’s loan portfolio.   Mesa West Capital holds the $130 million note on three of the six Class A office buildings comprising the 1.8 million square-foot Moffett Towers in Sunnyvale.    Since Mesa West acquired the note in November, landlord Jay Paul Company has signed nearly one million square feet of leases to such companies as Hewlett Packard, Microsoft and Motorola.
   
In the first six months on 2011, Mesa West has funded approximately $500 million of non-recourse first mortgage debt.

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About Mesa West Capital, LLC
Los Angeles-based Mesa West Capital http://www.mesawestcapital.com is a privately held portfolio lender with a capital base of more than $2 billion. Mesa West has an established debt platform that continues to provide flexible and reliable capital for real estate acquisitions, re-financings and re-capitalizations on office, retail, industrial, multifamily and hotels in the United States.
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Source:Bruce Beck
Email:***@dbrpr.com Email Verified
Zip:91362
Tags:First Mortgage Debt, Value Add, Lender, Recapitalization, Debt, Real Estate Capital
Industry:Real Estate, Business, Banking
Location:California - United States
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