LOS ANGELES—In separate financings, Mesa West Capital has provided multifamily investor Pacific Urban Residential with $43.7 million in first mortgage debt for the acquisition of apartment communities in Seattle and Los Angeles.
The loans are separately collateralized by Totem Lake Apartments, a 200-unit community in the Seattle suburb of Kirkland, and Waterstone at Cheviot Hills, a 120-unit apartment complex in West Los Angeles. Both loans carried a three-year term and each represented 75 percent of total acquisition and repositioning costs.
With $22.4 million in debt financing from Mesa West, Pacific Urban acquired Totem Lake from Security Properties of Seattle. Built in 1977, the property sits on more than 18 acres adjacent to Kirkland’s largest employer, Evergreen Hospital. A portion of the loan proceeds will be used to complete a multi-million dollar renovation initiated by the seller, which includes upgrades to the interior finishes and the addition of washers and dryers in each unit. The property is 96 percent occupied.
Mesa West also funded $21.3 million for Pacific Urban’s purchase of Waterstone at Cheviot Hills, a four-story apartment building featuring 120 studio, one- and two-bedroom units. Built in 1986, Waterstone features a rooftop swimming pool, fitness center and renovated common area. Pacific Urban also plans to undertake a significant renovation of all unit interiors. The property is 98 percent occupied.
“Seattle and Los Angeles are strong, highly desirable institutional multifamily markets,” said Mesa West’s Brandon Bachner who originated the financing. “Both properties are ideally located within those markets near major employers and retail amenities. They also benefit from easy access to key transportation hubs. Additionally, as an experienced multifamily owner/operator, Pacific Urban provided a business plan that will generate rental premiums at both properties.”
Both financings were arranged by Jake Roberts and Anita Paryani Rice of Marcus & Millichap Capital Corporation.
In 2012 Mesa West has deployed nearly $200 million in debt for the acquisition or refinancing of multifamily assets throughout the United States.