Mesa West Capital has provided a privately held real estate management and development firm with $77 million in first mortgage debt to fund its recent acquisition of Alta Congress, a 369-unit multifamily property in Delray Beach in Florida’s Palm Beach County.
The property has several drivers of demand. Built in 2013, the four-story apartment community is located on 9.3 acres at 250 Congress Park Drive, within walking distance to downtown Delray Beach and its popular Atlantic Avenue shopping district. The one-mile stretch of Atlantic Avenue, which ends at the Atlantic Ocean, was named one of the 10 best urban shopping centers in America by USA Today. In addition to the more than 8,500 businesses in Delray Beach and its 73,000 employees, the property is 10 minutes south of Boca Raton, which boasts more than 11,000 businesses employing 122,000 people.
The attractive employer base in both the immediate and surrounding areas plays a large role in the increasing apartment demand in Delray Beach, according to Mesa West Vice President Brian Hirsh, who led the origination team out of the private lender’s Chicago office.
“The existing Class A multifamily inventory in Delray Beach is extremely limited and the barriers to entry for new supply in the market are high,” said Hirsh. “With the Palm Beach metro experiencing significant population and job growth resulting partly from the migration of people from highly dense urban areas, this well-located asset is expected to continue to perform well during the sponsor’s hold period.”
The property, 96% leased at closing, has been rebranded as Congress Grove Apartments and features floor plans ranging from studio to three-bedroom apartment homes. Each unit features high‐end finishes with Energy Star® stainless steel appliances, hardwood style plank flooring, breakfast bars, granite countertops, walk‐in closets, in‐unit stackable washers/dryers, and hurricane impact-resistant windows. Building amenities include a fitness center, clubhouse & lounge, dog park, green courtyards, package room, and a heated pool with cabana seating.
Mesa West’s five-year, floating rate, non-recourse loan was arranged by Purvesh Gosalia of Newmark Knight Frank in the firm’s Houston office.
In the past three months, Mesa West Capital has originated more than $600 million for the acquisition, refinancing or recapitalization of multifamily transactions in New York, Florida, Colorado, California, Washington, Texas, Illinois, and Arizona.