Mesa West Capital Managed Account and Hudson Pacific Properties Provides LeEco With $140MM Loan for Silicon Valley Land Buy

Silicon Valley, Mesa West Capital, Hudson Pacific Properties, Bay Area, LeEco, Santa Clara, San Jose, CBRE Capital Markets


(EDITOR’S NOTE: The amount of debt being provided by Hudson Pacific is around $30 million, and the total cost of the land acquisition is $250 million for 49 acres of land. The loan on the land acquisition is a floating rate loan that runs for two years, with the rate spread over LIBOR with a return in the high single digits. The first phase of the three million square foot project will start next year, which will total one million square feet. On the first phase there will be a construction loan of around $500 million, which will be arranged sometime next year. The three million square foot project will be built over the next 10 years.)

Mesa West Capital Managed Separate Account and Hudson Pacific Properties Provide Chinese Tech Company LeEco with $140 MM Loan to Acquire Land for Future U.S. Headquarters in Silicon Valley

LOS ANGELES, July 18, 2016 – Hudson Mesa West SA Democracy Way, LLC, a limited liability company managed by Mesa West Capital on behalf of a separate account with a private pension fund, and Hudson Pacific Properties, Inc. (NYSE: HPP), provided Beijing, China-based internet technology company LeEco with $140 million in first mortgage debt to acquire a 48.6-acre land site in Santa Clara, CA for the planned development of a three million-square-foot World headquarters campus.

“LeEco is a very dynamic technology firm with exciting plans for the future. The firm saw this site as a terrific opportunity to develop a Global headquarters and plant a flag in the U.S. realizing that having a strong presence in Silicon Valley is pivotal for talent acquisition and continued growth,” said Mesa West Capital Vice President Brandon Bachner, a member of the origination team. “Our short-term floating rate loan will provide LeEco with enough runway to complete their pre-development plan.”

LeEco purchased the fully entitled site at 3005 Democracy Way, from Yahoo!, which had owned the property since 2004. The property lies within the Marriott Business Park, a 475-acre master planned development in Silicon Valley’s “Golden Triangle,” created by the 237, 101 and 880 Freeways. The area is home to such companies as Toshiba, Cisco, Samsung, Google, Apple and PayPal.

LeEco will team with a to-be-determined proven U.S. real estate partner to develop the property over several phases with the first one million square feet of office space expected to be completed by 2020. LeEco established a U.S. foothold late last year when it signed a lease for 80,000 square feet in nearby San Jose.

The financing was arranged by Brad Zampa in the San Francisco office of CBRE Capital Markets Institutional
Group.

About Mesa West Capital, LLC
Mesa West Capital (www.mesawestcapital.com) is a privately held debt fund manager and portfolio lender with more than $4.5 billion in assets under management. With offices in Los Angeles, Chicago and New York City, 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 $10 million up to $200 million. Since inception, the firm has sourced and closed more than 245 transactions totaling in excess of $10 billion.

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