WHITE PLAINS, NY—Mesa West Capital reports it has provided a joint venture led by Morristown, NJ-based Normandy Real Estate Partners $119 million in first mortgage debt to refinance The Exchange, a 1.4-million-square-foot suburban office campus-styled portfolio here.

The transaction was arranged by Eastdil Secured. A portion of the loan proceeds will go towards a targeted leasing campaign, which will be implemented on an asset-by-asset basis, as well as selective property upgrades.

The Exchange, formerly known as the EastRidge portfolio, was originally developed by pioneer Westchester developer Lowell Schulman in the late 1960s, 1970s and 1980s. The Exchange portfolio consists of 12 suburban low- and mid-rise commercial office buildings spread across four business parks along Interstate 287 in and around White Plains. Normandy has invested more than $11 million in capital upgrades throughout the portfolio in an effort to stabilize the assets, Mesa West Capital officials state. Mesa West is headquartered in Los Angeles and has offices in New York City.

Normandy has been able to increase occupancy across the portfolio adding nearly 150,000 square feet of new leases in 2013 alone, according to Daniel Tanner, who originated the financing out of the Mesa West Capital's New York City office.

“The economic downturn hit the Westchester County office market particularly hard,” states Tanner. “However, the market is showing steady improvement as the submarket reinvents itself, which is reflected in the increase in both net absorption and asking rental rates.”

“Normandy has done an excellent job in upgrading the portfolio during its ownership and of creating a significant amount of leasing momentum,” Tanner adds. “Our financing with help them execute the remainder of their business plan and stabilize the portfolio.”

A portion of the loan proceeds will go to a targeted leasing campaign, which will be implemented on an asset-by-asset basis, as well as to allow the sponsor to continue to selectively upgrade the properties.