SUNNYVALE, CA-Mesa West Capital of Los Angeles has acquired the$130 million note on three 13% occupied class A office towerstotaling 951,000 square feet, citing the potential to fill thespace when the market improves, according to Mesa West principalRonnie Gul. The three towers, developed by San Francisco-based JayPaul Co. and completed in 2008, are part of a six-story,multi-story project totaling 1.6 million square feet called MoffettTowers at the juncture of Highways 101 and 237.

|

The collateral on the note includes phase one of the officecampus, which is composed of the three largest and most prominentbuildings. Although the collective occupancy of the three buildingsis 13% following a recently signed 125,000 square-foot lease withRambus, Gul says that Moffett Towers “is a high-profile,first-to-lease asset that's uniquely positioned to capture theexpected increase in demand for class A office space." Gul adds,“This note purchase fits perfectly within our lending platform offinancing high-quality, well located transitional assets backed bystrong local sponsors."

|

Gul continues: "Much of the available inventory in SiliconValley is older and outdated, and while largely vacant we believeMoffett Towers is well positioned to take advantage of the flightto quality as fast-growing technology companies seek to upgradetheir image with higher quality space." The note sale was arrangedby Noble Carpenter and Michel Seifer of Jones Lang LaSalle.

|

In a separate transaction, Mesa West has provided a $17.5million loan for the purchase and lease up of Two Addison Circle, avacant 198,484 square-foot class A office building in the NorthDallas suburb of Addison, TX. Built in 2009, the six-storyLEED-certified brick and glass building with structured parking for735 cars, was recently acquired by Brookfield Real EstateOpportunity Fund. "This represents another example of Mesa WestCapital's ability to close on a first class asset with superiorsponsorship," adds Mesa West director Raphael Fishbach whooriginated the loan.

|

The financing was arranged by the Dallas office of HollidayFenoglio Fowler. Mesa West Capital provided the financing throughits $614.5 million Mesa West Real Estate Income Fund II, LP, whichclosed in June 2010. Currently Mesa West has originated nearly $200million in financings through Fund II. Mesa West's first fundoriginated $1.5 billion in 83 financings.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.