Mesa West Funds $64M in California
- Jan 31, 2017
Los Angeles—Mesa West Capital has originated $63.8 million in short-term first mortgage debt in two separate financings secured by assets in the California cities of Walnut Creek and San Diego, the company announced Friday. Each property was financed with a five-year, non-recourse, floating-rate loan, originated in each case by Mesa West Principal Steve Fried and Associate Seth Hall.
Mesa West provided a joint venture of Citivest Commercial and Tallen Capital Partners with a $35.8 million first mortgage loan to refinance and reposition the 108,000-square-foot Rossmoor Shopping Center in Walnut Creek, in the San Francisco Bay area.
The joint venture had acquired the grocery-anchored property in 2012 and is implementing a redevelopment plan that includes upgrading the exterior façade, expanding the inline space and adding new retail pads, adding in all 27,000 square feet of net rentable area.
Occupancy at Rossmoor is 77 percent, a Mesa West spokesperson told Commercial Property Executive, and the center is anchored by a Safeway and a CVS Pharmacy, with other tenants including Starbucks, U.S. Postal Service and Wells Fargo Bank.
The sponsor reportedly plans to leverage the planned improvements to roll existing leases to market and build on current leasing momentum, which includes new leases for future pad space with CVS and Starbucks.
In a separate transaction, Mesa West provided Newport National Corp. with a $28 million first mortgage loan for the acquisition, renovation and stabilization of Scripps Summit Court, a vacant 146,549-square-foot, four-story office building on a 21-acre lot at 10641 Scripps Summit Court, in San Diego’s affluent Scripps Ranch submarket.
Last November, the borrower acquired the Class B property from owner-user HD Supply Facilities Maintenance, which recently relocated to Atlanta, for $31.4 million, according to information from Yardi Matrix.
The building was completed in 2000 as a build-to-suit for HD Supply and features a cafeteria, fitness center, locker room with showers, outdoor patios, and basketball and sand volleyball courts. The loan proceeds will be used for a renovation that will include a new exterior entrance, upgrades to the lobby and common areas, a new bistro/coffee bar, an upgraded fitness center, and a new training/events room.
The loan also includes a holdback to fund future tenant improvements and leasing costs. (CPE was unable to reach Newport National for further information.)
Image courtesy of John Cumbelich & Associates