Mesa West Capital has provided the acquisition financing for a two-property multifamily portfolio in the Seattle-Tacoma metro and a 345,000-square-foot industrial complex in Denver, CO and, in separate transactions totaling $109.8 million.
Mesa West Capital has provided Phoenix Realty Group (PRG) in joint venture with Hanover Real Estate Investors with $66.5 million in short-term debt for the acquisition of two garden-style multifamily properties in Kent, WA. PRG is a 20-year old firm focused on multifamily residential properties with offices in New York City and Los Angeles. Originated as two separate, five-year, floating-rate loans, the financing was secured by the 175-unit Lake Meridian and the 186-unit Royal Firs Apartments. The similar garden-style communities feature a mix of one-, two- and three-bedroom floorplans in two-story wood framed residential buildings on 7.5-acre sites. While well maintained, the properties represent a significant value-added opportunity since neither community has been materially improved since their construction in the late 1980s. PRG will immediately begin a substantial renovation program targeting unit interiors and improvements to the clubhouse, pool and spa, fitness center and playground at both communities.
“Lake Meridian and Royal Firs are two well-located apartment properties in Kent, a submarket that has experienced steady growth for almost a decade with very few new multifamily projects delivered over the same period,” said Mesa West Capital Director and head of the San Francisco office Joshua Westerberg who originated the loans. “Our financing includes loan proceeds to fund PRG’s comprehensive renovation program that will position these properties among the most desirable apartment communities in the Kent market.”
In a separate financing, Chicago-based La Salle Investment Management, on behalf of one of its managed funds, has received $43.33 million in short-term debt from Mesa West Capital for the acquisition of Parc Santa Fe, a newly completed industrial development in Highland Ranch, CO, 20 miles south of Downtown Denver. Parc Santa Fe is the first new industrial development in Denver’s Southwest submarket in the past two decades.
Completed in June 2019 by the seller, Dallas-based industrial development firm Jackson Shaw, the 22-acre Parc Santa Fe complex comprises three Class A industrial buildings ranging in size from 85,903 – 169,950 square feet. The buildings offer clear heights of 24 and 28 feet, dock high and grade level doors, ESFR sprinklers and secured outside storage. Parc Santa Fe is collectively 62 percent leased. A portion of the five-year, non-recourse, floating-rate loan will be used to fund tenant improvements and brokerage commissions associated with lease up and stabilization, according to Mesa West Director Matthew Snyder who led the origination team out of the firm’s Chicago office.
“As the newest development in Denver’s Southwestern submarket in two decades, the property boasts a strategic advantage with its configuration and amenities over the other dated properties in the competitive set,” said Snyder.
