Mesa West Capital originates two loans totalling USD117m
Mesa West Capital has provided financing for the acquisition of a multifamily project in Henderson, NV and the construction of a Class A office tower in suburban Philadelphia in separate loans totalling USD117.375 million.
A joint venture of an affiliate of American Real Estate Partners and developer Oliver Tyrone Pulver Corp (OTPC) has received a USD76.5 million loan from Mesa West Capital for the construction of Seven Tower Bridge, a 260,000-square-foot Class A office building in the Pennsylvania borough of Conshohocken, located 10 miles north of Center City Philadelphia. Seven Tower Bridge is the last in a series of buildings developed by OTPC and its affiliates within the 45-acre, 1.4 million-square-foot masterplanned, mixed use Tower Bridge development and the first new office project in Conshohocken since 2002.
The three-year floating rate is one of the few construction loans originated by Mesa West Capital in its 15-year history, according to Director and head of the Chicago office Matthew Snyder who originated the financing.
“As a relationship lender, we are looking at ways to provide a wider variety of financial solutions to meet our clients’ business objectives, including construction financing in the right situations,” said Snyder. “There were several significant factors leading to the decision to fund this construction loan among them that Seven Tower Bridge has experienced exceptional leasing momentum to-date with 55 per cent of the NRA already pre-leased before going vertical.
“Conshohocken also is a desirable suburban office location that continues to outperform Center City Philadelphia in long-term rent growth and occupancy. With nothing in the pipeline and very little office product added in recent years, Seven Tower Bridge will be well positioned as the premier office building in the submarket when delivered in 2020,” he added.
Mesa West Capital also provided The ConAm Group with USD40.875 million in short-term, first mortgage debt for the acquisition and repositioning of South Valley Ranch Apartments in the Las Vegas submarket of Henderson, NV.
South Valley Ranch features 292 apartment homes in a mix of one-, two- and three-bedroom floorplans housed in 37, two-storey buildings on a 17-acre site. Common area amenities include an outdoor swimming pool, fitness centre and dog run. ConAm, one of the largest multifamily owner-operators in the U.S. with more than 53,000 fee-managed and company-owned units under management, has budgeted a multi-million dollar renovation program targeting common areas, amenities and apartment interiors as units roll.”
“Henderson’s population has increased more than 15 per cent between 2010 and 2018 making it the second-largest city in Nevada with more than 310,000 residents,” says Mesa West Principal Steve Fried. “The submarket is home to a number of employment nodes with manufacturing and logistics centres claiming a footprint in the submarket, which contributes to its robust apartment demand.”