After acquiring the note on the property in October 2013, HighBrook, a New York-based real estate private equity firm, entered into an agreement with the existing owner to convert its interest to an equity stake in the building.
“We’re excited about the opportunity to finance HighBrook on this deal. They were able to acquire a solid asset at an attractive basis in a thriving submarket of Atlanta,” said Mesa West’s Daniel Tanner, who originated the financing out of the portfolio lender’s New York City office. “The deal was a bit complicated, but we were able to design a creative financing structure that will allow our borrower the flexibility to execute on their business plan.”
Built in 1981 on a two-acre site at 3475 Lennox Road NE, One Live Oak features large rectangular 22,000-square-
The building is 56 percent occupied. UGA Real Estate Foundation is the major tenant where it operates the Terry College of Business. The new ownership group intends to stabilize the property through an aggressive repositioning plan. A portion of the loan proceeds will be used for leasing costs and other capital expenditures in order to stabilize the building.
HighBrook was formed in 2010 to capitalize on the growing distress in commercial real estate at the time. The company focuses on value-oriented investment opportunities and often invests in properties that are encumbered by complicated financial structures, such as tenant-in-common structures. The company is currently investing its debut fund, HighBrook Income Property Fund, LP.
About Mesa West Capital, LLC
Los Angeles-based Mesa West Capital (www.mesawestcapital.com)