Los Angeles, CA (January 22, 2018) – Mesa West Capital provided a private multifamily investment firm with $125 million in short-term first mortgage debt to finance the West Coast apartment investor’s recent acquisition and repositioning of four California multifamily assets.
Mesa West’s five-year, floating rate financings were secured by properties in the San Francisco Bay Area, Orange and San Diego Counties. They include the 186-unit Atlantic Apartments in Alameda (purchased for $49.55 million, $266,397 per unit), the 116-unit Mosaic Hayward (purchased for $29.4 million, or $253,448 per unit), the 102-unit Villas at Carlsbad in Carlsbad, and the 116–unit Vista del Rey in Tustin.
The properties were acquired over the past six months from three different sellers. The properties all provide workforce housing in infill locations and were in need of more focused management and capital upgrades, according to Mesa West Capital Principal Ronnie Gul, who led the origination team out of the private lender’s Los Angeles office.
“Each of the properties is located in a solid, infill location with durable demand drivers that provided new ownership an opportunity to more efficiently manage operations to maximize value,” said Gul. “We’ve worked with this client on a number of similar transactions over the years and they have a solid track record in adding value to similar infill assets, through thoughtful, targeted renovations and active, professional management.”
The portfolio was approximately 95% leased at below market rents, at the time of closing.
A portion of the loan proceeds will be used to cure deferred maintenance and help fund various renovation programs. Improvements will focus on the exterior presence and common area amenities with select interior upgrades on a unit-by-unit basis.
All of the properties are located in major metro first-ring submarkets exhibiting strong and lasting multifamily market fundamentals, according to Mesa West Vice President Brandon Bachner.
The financings were arranged by Jake Roberts and Anita Paryani-Rice at IPA Capital.
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 $20 million up to $300 million. Since inception, the firm has sourced and closed more than 245 transactions totaling in excess of $10 billion.