“The San Francisco Bay Area continues to be a desirable and liquid multifamily market with tight vacancy rates and strong fundamentals,”
In the larger of the two financings, Mesa West provided Palo Alto-based Pacific Urban Residential with a $31 million first mortgage loan for the acquisition of Park Towers. Built in 1964, Park Towers is a six-story apartment building located at 535 Everett, within walking distance to University Avenue and Stanford University. The building features 42 studio and 48 junior one-bedroom apartments ranging in size from 443 square feet to 606 square feet, each with their own large balcony. Other amenities include subterranean parking, pool and fully equipped gym.
The building was well occupied at the time of sale with rents significantly below market, according to Gul. “Pacific Urban Residential is an experienced and local multifamily investor who will leverage the property’s outstanding location within blocks of University Avenue to increase value,” he said.
Mesa West also has provided a $20.4 million first mortgage loan to California Landmark Group for the acquisition and repositioning of the 80-unit Woodlark Apartments in Larkspur, CA.
Built in 1962, the low-density garden style apartment complex comprises 11 two-story buildings on a four-acre site, with a mix of one- and two-bedroom units ranging from 648 to 945 square feet. The sponsor plans to utilize a portion of the loan proceeds on renovations and improvements including new appliances, cabinets, laminate flooring, paint, stone countertops, and the addition of washers and dryers in each unit, as well as a new gym and leasing office.
The city of Larkspur is a highly desirable suburban community north of San Francisco in Marin County with convenient access to the city via car or a variety of public transportation options including ferry and bus service. South Marin has a very limited multifamily supply and is the strongest submarket market in the Bay Area yielding a vacancy rate of 1.9%.”
“The San Francisco Bay area rental market is arguably one of the strongest in the United States with the average rent per square foot double that of the national average and vacancies well below five percent,” added Gul. “With a limited inventory of rental housing and an increase in household formation due to the improving local economy, we are confident in the performance of the local rental market over the foreseeable future.”
About Mesa West Capital, LLC
Los Angeles-based Mesa West Capital (www.mesawestcapital.com)