Mesa West Capital has provided a joint venture of ESG Kullen and Angelo Gordon with $49.24 million in first mortgage debt for the recapitalization of a 219-unit multifamily property in Palm Beach County, FL. 

The floating rate loan is secured by Monteverde at Renaissance Park located at 1625 Renaissance Commons Blvd. in Boynton Beach, less than 15 miles south of Downtown West Palm Beach. Built in 2006, originally as condominium, the 2.5-acre property offers a mix of one-, two- and three-bedroom apartment homes housed in three six-story buildings. The Property, which was 91.8 percent leased at closing, offers an attractive array of amenities, including a resort-style pool and jacuzzi, a fitness center, billiard room, outdoor grills, bicycle storage, a gated parking garage and an on-site property manager.

The Property is located in Boynton Beach within the Renaissance Commons master-planned community, which features dining, shopping, entertainment venues and various other retailers. Within a two-mile radius of the community there is more than two million square feet of retail, including Boynton Beach Mall, Renaissance Commons and multiple grocery-anchored centers. 

Driven by the financial, medical and education sectors, Palm Beach County – the third most populous county in the state of Florida – has exceeded 16% population growth since 2010. The county has taken on the moniker of “Wall Street South” due to more than 2,400 financial services firms establishing offices there. Monteverde also benefits from its proximity to five major medical centers (Bethesda Memorial Hospital, JFK Medical Center, Delray Medical Center, Boca Raton Regional Hospital, and West Boca Medical Center) and four major education centers (Palm Beach Atlantic University, Palm Beach State College, Florida Atlantic University, and Lynn University), all within a 20-minute drive. 

“Monteverde offers the sponsor an outstanding value-add opportunity in reimagining the common and amenity spaces to bring them in-line with market current standards,” said Mesa West Executive Director Russell Frahm, who led the New York City-based origination team along with Vice President Brian Hahn and Analyst Jacob Rosen. “In addition, the Property will benefit from strong multifamily demand drivers, including the continued Sun Belt migration, especially to no income tax states like Florida, and greater appeal of multifamily living in this higher interest rate economy.”

Mesa West Capital continues to invest in Palm Beach County, FL with over $310 million in loans originated in West Palm Beach, Delray Beach Boynton Beach and Jupiter in the past 24 months. 

The financing was arranged by Michael Lupo, Principal at CCL Capital. Mesa West Capital was represented in the transaction by the legal team led by Mark Osher, Eric Steiglitz, and Zak Baron from Gibson, Dunn & Crutcher LLP.

Mesa West Capital has provided Sares Regis Group with $139.88 million in first mortgage debt for its acquisition and repositioning of a 386-unit multifamily property in Broomfield, CO. 

The five-year, floating rate loan is secured by Terracina Apartments located at 13620 Via Varra Road in the Denver metro area. Built in 2010, the 16.5-acre community offers a variety of one- and two-bedroom apartment homes housed in four four-story residential buildings. The community features a wide range of amenities including a pool and hot tub, a clubhouse and fitness center, co-working lounge, dog park and pet wash, fire pit and grilling area, and outdoor games area. 

A portion of the loan proceeds will help to fund the sponsor’s capital improvement plan that will feature upgrades to unit interiors as well as the renovation of the community’s common areas.

Terracina Apartments is well situated between Denver and Boulder, site of the state’s flagship university, the University of Colorado. Located close to U.S. 36 and rapid transit, the property draws from the Mile High City’s major growth and Boulder’s tech and life sciences sectors.

“Broomfield is uniquely positioned between Denver and Boulder, pulling from those major economic engines with more affordable housing options,” said Mesa West Capital Executive Director Josh Westerberg, who led the origination team out of the private lender’s San Francisco office.  “The area’s consistent annual rent growth is proof of that attractive market dynamic. The planned capital improvements for Terracina Apartments will add even more value to this property.”

Over the last decade, Broomfield has experienced tremendous growth, outperforming surrounding metro Denver cities. In particular, skilled millennials are drawn to its high quality of life and much lower housing costs, according to Westerberg. Terracina Apartments offers residents quick connections to Broomfield’s major employers, including Vail Resorts, VMware, OpenText, Crocs, Trimble and SCL Health. Also, Oracle leases more than 1 million square feet across six buildings in the city. 

Terracina Apartments was 95.1 percent leased at closing.

The financing was arranged by Brian Torp, Managing Director in the Orange County office of Jones Lang LaSalle.  

Mesa West Capital has provided KB Investment and Development Company with $108 million in first mortgage debt for its acquisition a 328-unit multifamily property in Phoenix, AZ. 

The five-year, floating rate loan is secured by Skywater at Town Lake located at 601 W. Rio Salado Parkway in the Phoenix submarket of Tempe.  Built in 2015, the five-acre property offers a mix of floor plans ranging from studios to three-bedroom apartment homes housed in five four-story elevator-served buildings. 

Skywater at Town Lake benefits from its prime location within the Tempe submarket.  The property draws from the approximately 54,000 students attending nearby Arizona State University and more than 100,000 people that now work in Tempe.       

Over the last 10 years, Tempe has evolved from a traditional college town centered around ASU to an economically diverse, urban, employment corridor with the fastest‐growing concentration of technology and financial services companies in the state. Tempe’s office market has grown from 2.7 million square feet in 2014 to more than 11 million square feet today.  Skywater at Town Lake also  is within walking distance to the Mill Avenue Entertainment District, which boasts one  of the highest concentrations of restaurants café, microbreweries, sports bars, and retail amenities in Arizona.  

In addition to its location, tenants have been drawn to the property for its extensive  amenities which include a sundeck swimming pool with views of Tempe Town Lake, a top floor resident clubhouse with a full kitchen, pool tables and wrap around balcony, an outdoor kitchen and entertainment space with firepits and games, a two‐story fitness center with a yoga studio and Peloton bikes, EV charging stations, a bike/paddle board/kayak storage room, an underground parking structure and an on‐site coffee shop.

“Tempe’s unique demand drivers including proximity to major employers and ASU as well as entertainment and lifestyle amenities in the market are supporting the strong demand for housing” said Mesa West Vice President Brian Hirsh who led the origination team.  “Rent growth has accelerated at a historic pace in the submarket as vacancy rates compressed to their lowest level in a decade.”

Skywater at Town Lake was 96.6 percent leased at closing.

The financing was arranged by Rocco Mandala, Vice Chairman at CBRE in Phoenix. 

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 400 transactions totaling over $26 billion. 

Mesa West Capital provided $92.5 million in bridge financing to an institutional real estate private equity fund for the acquisition and repositioning of a 400-unit Class A multifamily property in Atlanta.  

The four-year, interest-only floating rate financing was secured by Magnolia Vinings, a garden-style apartment building at 2151 Cumberland Way in Atlanta’s Cumberland/Galleria submarket.   A portion of the loan proceeds will be used by the sponsor to continue the renovation program started by the seller, focusing largely on the interiors of 177 apartment homes that have not been significantly updated since the property was built in 1996. 

“This property is very well located in northwest Atlanta with easy access to two interstates, all the consumer draws that the prime district has to offer, including the Major League Baseball Atlanta Braves-anchored mixed-use Battery development, Home Depot’s headquarters and much more,” said Mesa West Vice President Brian Hirsh who led the origination team out of Mesa West Capital’s Chicago office.  “Cumberland/Galleria is one of the premier suburban markets in Atlanta and the deep pool of large corporate employers has continued to help boost housing demand here.  Our financing will allow the sponsor to reposition the asset as a quality alternative to newer and higher priced communities in the area.” 

Magnolia Vinings, which is 98 percent occupied, is situated on 21.55 acres just inside Atlanta’s perimeter between Interstate 285 and Cumberland Parkway.  It features a mix of one- to three-bedroom units across five different floorplans, ranging in size from 572 to 1,408 square feet. Each unit offers 9’ foot ceilings, high-end finishes, large walk-in closets and spacious kitchens with stainless steel appliances. Renovated units come equipped with quartz countertops, vaulted ceilings, vinyl plank flooring, framed mirrors and a wood-burning fireplace. Community amenities include a resort-style swimming pool, a new clubhouse and fitness center, a cyber lounge, and a bocce ball court. 

The financing was arranged by Michael Riccio, Senior Managing Director  and Co-Head of National Production for CBRE Capital Markets Debt & Equity Finance in the firm’s Hartford, CT office. 

Mesa West Capital Originates $84.75 Million to recapitalize two Los Angeles Luxury Apartment Buildings Developed and Owned by California Landmark Group.

The refinance was secured by two residential communities, the “HW” by CLG, a 79-unit low-rise boutique courtyard building in Hollywood and the “BW” by CLG, a 78-unit mid-rise apartment community in the West Los Angeles neighborhood of Brentwood.  

“Both properties are located in strong pockets of Los Angeles with high renter demand,” said Executive Director Josh Westerberg who led the origination team out of Mesa West Capital’s San Francisco office. “The bulk of the multifamily inventory in these submarkets are older product and both of these properties stand out as high-quality options for tenants looking for better amenities and high-quality interior finishes.” 

The HW is located on Hollywood Boulevard between Laurel Canyon and Fairfax Avenue and features a mix of one- and two- bedroom floorplans ranging in size from 698 to 1,360 square feet.  Each unit offers 10’foot ceilings, Bosch appliances, full size washer and dryer, designer finishes including stone countertops and backsplashes, lighting fixtures, and wood plank flooring.  Community amenities include rooftop deck with views of downtown Los Angeles and the Hollywood Hills, pool and spa, private screening room, and a cardio and weight center.   

The BW is located at the northeast corner of Barrington Avenue and Wilshire Boulevard, approximately five miles from the City of Santa Monica and the Pacific Ocean.   The one-, two- and three-bedroom apartment homes offer a similar amenity package as the HW.  The building features a rooftop lounge with outdoor kitchen and grilling pavilion, 24-hour cardio and weight studio, and a ground floor restaurant operated by noted chef Ramin Nouri. 

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.