Mesa West Capital Finances Northbridge Centre Acquisition With $56.8M
- Apr 04, 2016
Miami–Mesa West Capital’s New York office has originated a $56.8 million first mortgage loan to 515 N. Flagler Drive Owner LLC for the acquisition, renovation and stabilization of Northbridge Centre, a Class A office building in West Palm Beach, Fla.
The floating rate loan allows the operator to leverage the acquisition and includes a future funding component to be used toward leasing costs associated with stabilizing the property, according to Mesa West Southeast Vice President, Russell Frahm.
515 N. Flagler Drive Owner LLC acquired the 287,000-square-foot LEED Certified Northbridge Centre from Gaedeke Group, which owned the building for the past 20 years. Built in 1987 and renovated in 2002, the property consists of a 21-story high-rise tower as well as a separate four-story building, 843 parking spaces and 7,200 square feet of retail space. At the time of the deal, Northbridge Centre was 71 percent leased.
Northbridge Center is located at 515 North Flagler Drive, in close proximity to the base of the Flagler Memorial Bridge and near the Palm Beach Yacht Club and the retail corridor on Clematis Street. The property offers views of the Intracoastal Waterway, Palm Beach and the Atlantic Ocean.
“Increased demand and a lack of new supply have resulted in a steady increase in rents and occupancy which we expect to continue over the next several years. The sponsor acquired a quality asset at a cost basis far below that of competing product, and our financing will allow ownership to implement its business plan to capitalize on the improving market,” added Frahm.
Mesa West Capital is a privately held debt fund manager and portfolio lender with more than $3 billion in assets under management. Headquartered in Los Angeles with an office in New York City, Mesa West has been one of the leading providers of commercial real estate debt since its founding in 2004.
The firm recently provided a $210 million loan to a partnership, led by Chicago-based Hearn Co., to refinance the office and parking spaces of the iconic Chicago John Hancock Center. Since inception, the company has sourced and closed more than 200 transactions totaling in excess of $6 billion.
Photo courtesy of Yardi Matrix.