LOS ANGELES AND NEWPORT BEACH, CA—Mesa West Capital has originated the first loan from its Mesa West Real Estate Income Fund III, providing an affiliate of Emmes Asset Management with $55 million in first mortgage debt to recapitalize a 376,000 square-foot Class A office complex in Newport Beach, CA.

The property, constructed in 1979 and located at 4000 MacArthur Boulevard, comprises two 10-story institutional quality office buildings with 19,000 sf floor plates.  Emmes recently completed a multimillion dollar renovation of the property that included a redesign of the building lobby and entry façade, a new full-service café and outdoor patio on the ground floor, major improvements to the building systems as well as other common area upgrades. 

“Emmes was able to acquire an institutional quality asset in a top Southern California location and is repositioning it to take advantage of a lack of large contiguous blocks of quality space and an improving rental market in Orange County,” said Jason Bressler of Mesa West Capital.  “They have a tremendous track record in realizing the investment potential in transitional assets, especially here in Orange County.”

Emmes Asset has selected Jones Lang LaSalle to lease the complex. The landmark property has immediate availability for users ranging from 5,000 square feet to more than 285,000 square feet. 

Leading the leasing efforts for the property are Jones Lang LaSalle Orange County Senior Vice Presidents Jay Nugent, George Thomson and Andy White.

“Jones Lang LaSalle was selected for this assignment because of its deep and broad expertise in OC and its ability to successfully market buildings of this caliber,” said Nugent.  “4000 MacArthur is ideal for companies seeking a Class A office building in a premier location.  With more than 180,000 square feet of contiguous space and prime building signage rights, the property is ideal for a large user or corporate campus."

 The financing is Mesa West Capital's first from its Mesa West Real Estate Income Fund III, a closed-end real estate debt fund which provides short-term first mortgage debt of approximately $15 million - $150 million for the acquisition and recapitalization of transitional or non-stabilized commercial real estate assets throughout the United States.   Through its first two Funds, Mesa West Capital has originated more than $3.5 billion in financings on multifamily, office, retail, industrial and hotel properties. 

Jonathan Firestone and J.P. Leveque at Eastdil Secured arranged the financing.