(EDITOR’S NOTE: According to previous reporting from The Registry, Los Angeles-based Kilroy Realty sold the property to the joint venture for $75.9 million.)
Los Angeles, CA (February 3, 2020) – Mesa West Capital has provided a $58.7 million first mortgage loan to a joint venture between the Merchant Banking Division of Goldman Sachs and Lincoln Property Company for the acquisition and re-tenanting of an 87,565-square-foot office building in the Silicon Valley submarket of Mountain View, CA.
The five-year, floating rate loan is secured by 331 Fairchild. The three-story Class A LEED Certified Platinum office building constructed in 2013 is 100% leased to Knowles Electronics through September 2023.
The joint venture will invest in a comprehensive capital improvement program to enhance the property to meet the strong demand by large established technology companies looking to expand or establish a presence in Mountain View’s supply-constrained office market. Improvements will include modernization to the courtyard entrance, and upgrades to the lobby and indoor amenity spaces. A portion of Mesa West Capital’s loan proceeds will fund the capital improvement program along with tenant improvements and leasing commissions associated with the building lease up if Knowles Electronics does not renew its lease.
The property fronts U.S. Highway 101 across from Moffett Field. Mountain View, located in the heart of Silicon Valley between Palo Alto and Sunnyvale, is recognized as the home of Alphabet’s Google. Other corporate neighbors include Synopsys Inc., Samsung, Intuit, LinkedIn, Veritas Technologies and Omnicell.
“Historically Mountain View has been more stable and seen less volatility compared to other submarkets in the Bay Area, and we expect that to continue during these extraordinary times,” said Josh Westerberg, a Director in Mesa West Capital’s San Francisco office, who along with Principal Ronnie Gul led the origination team. “Overall, Mountain View ranks among Silicon Valley’s strongest submarkets particularly for technology companies attracted by the area’s talent base.”
The financing was arranged by Ramsey Daya, Vice Chairman of Newmark Capital out of the firm’s San Francisco office.
About Mesa West Capital, LLC
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 $16 billion.