Mesa West Capital has provided American Real Estate Partners (AREP) with a $26.1 million mezzanine loan to facilitate the conversion of a 200,000-square-foot office building into a 199-unit multifamily community in Old Town Alexandria, Virginia, a thriving historic community less than eight miles south of Washington, DC.
The five-year interest-only mezzanine loan was originated by investment funds managed by Mesa West Capital, a debt investment manager offering owners and investors a wide variety of financial solutions throughout the capital stack to help navigate today’s challenging economic environment. The loan is part of an overall debt package that provided 67.5% loan-to-cost financing with a $61.8 million first mortgage construction loan originated by Bank OZK.
Built in 1984, the seven-story 1101 King Street is located in Old Town Alexandria, a historic and highly desirable submarket of Washington, DC. The sponsor will transform the former office building, and reposition as City House Old Town, a best-in-class residential product in the heart of Old Town Alexandria.
“The transaction presented an opportunity to originate a moderate leverage mezzanine loan on a multifamily property located in the high barrier to entry market of Old Town Alexandria,” said Mesa West Executive Director Matt Snyder, who helped lead the Chicago and New York-based origination team along with Vice President Brian Hahn and Associate Jonah Sacks. “This has created a huge supply/demand imbalance for renters who want to take advantage of the neighborhood’s historic charm, strong retail amenity base and easy commute to Washington, DC and the area’s other major employment hubs.”
The financing was arranged by Joe Donato, Kevin Ridgway and Andrew Gaffney of Newmark.
Mesa West Capital is a leading commercial real estate debt fund manager and portfolio lender. With offices in Los Angeles, New York, Chicago and San Francisco, Mesa West has been one of the leading providers of commercial real estate debt since its founding in 2004. Mesa West provides non-recourse first mortgage loans for core/core-plus, value-added or transitional properties throughout the United States. Mesa West’s lending portfolio includes all major property types with loan sizes ranging from $20 million up to $400 million. Since inception, the firm has sourced and closed more than 300 transactions totaling over $20 billion.
Headquartered in the Greater Washington metropolitan area, AREP is an institutional fund manager and operating partner focused on data center, residential, industrial, and office assets, on both a development and repositioning basis, in key markets across the country. Since the company’s founding in 2003, AREP has deployed over $6 billion across targeted geographies, acquired more than 22 million SF of Class A real estate, and currently oversees a portfolio of over 12 million SF. AREP’s vertically integrated real estate platform and experienced management team provide exceptional expertise in all ownership disciplines, from acquisition and development to asset management, repositioning, and realization. By leveraging this expertise and the firm’s long-standing strategic relationships, AREP remains at the forefront of real estate innovation, maximizing investment and enhancing performance to provide added value for its investors, partners, and customers. For more, visit AREP’s Newsroom or follow us on LinkedIn.
