Mesa West Capital has originated $40 million in first mortgage debt to finance the off-market acquisition of a 309-unit apartment complex in Austin, Texas. The buyer is Texas-based SPI Advisory.
The five-year, floating rate loan is secured a Class A multifamily asset called Elan Parkside that is located within Highland, a large-scale redevelopment of a shuttered regional mall now under construction in central Austin. The Highland redevelopment is currently expected to include 1,200 residential units, 200 hotel rooms, 800,000 square feet of commercial office space, and 1.3 million square feet of academic space for a new central campus for Austin Community College.
Located at 609 Clayton Lane, Elan Parkside, was developed in 2017 by the seller and was the first apartment complex in the Highland redevelopment district. The six-story property features a mix of studio, one- and two-bedroom floorplans and approximately 5,500 square feet of ground level retail space. Common area amenities include a four-level parking garage, swimming pool, aquatic plaza, 24-hour fitness center, outdoor courtyard with fireplaces and fountains, two-level clubhouse with a business center, bike storage, and an outdoor kitchen. The property was 97 percent leased at closing.
The financing is part of a wave of origination activity on multifamily assets for Mesa West Capital. Over the past 24 months Mesa West Capital has originated more than $300 million on multifamily across seven assets in the Austin Metro.
“While the pandemic has introduced some instability to the Austin apartment market similar to many other metro areas, we believe the MSA is still poised to be a long-term winner,” said Mesa West Capital Vice President Brian Hirsh who led the origination team out of the private portfolio lender’s Chicago office. “Elan Parkside’s desirable central Austin location and institutional asset quality make it a great addition to our growing Texas loan portfolio”
Andy Scott and Michael Cosby in the Dallas office of JLL Capital Markets Americas, arranged the financing.