LOS ANGELES--(BUSINESS WIRE)--Mesa West Capital has originated $165 million in short-term first mortgage debt to refinance two new luxury apartment complexes in San Diego, CA developed and owned by Sunroad Enterprises. The financing was structured in two pieces, with Mesa West holding the $145 million A-Note and New York-based real estate investment advisor Clarion Partners holding the $20 million B-Note.
Mesa West’s five-year, non-recourse loan is secured by the 253-unit Ariva and the 302-unit Vive on the Park, the two most recent apartment developments in Sunroad’s 40-acre master planned community Sunroad Centrum in the Kearny Mesa submarket. At build out, Sunroad Centrum will include 1,622 multifamily units and 856,000 square feet of commercial office space. Sunroad Centrum is part of the San Diego Spectrum Center, the redevelopment of the former 232-acre General Dynamics aerospace facility.
Ariva, which consists of two four-story podium style buildings, was completed in 2014 and leased up by the sponsor in less than 16 months. The seven-story Vive on the Park was recently completed and is 52% leased after being on the market only five months. Both projects have set the standard for top end luxury apartment living in Central San Diego – including top-end construction, upscale amenity packages and contemporary finishes designed to attract the luxury apartment renter.
“The sponsor has done an excellent job in leveraging the portfolio’s quality finishes, high-end and diverse amenity offerings and central Kearny Mesa location in the lease up of these two projects in a very competitive market,” said Mesa West Capital Principal Steve Fried, who led the origination team along with Vice President Jason Bressler. “We are confident in their ability to maintain the strong leasing velocity to meet the demand for this type of product in one of the most rapidly developing pockets in San Diego County.”
“Clarion Partners was delighted to team up with Mesa West to provide financing on such a high quality apartment project owned and developed by one of the preeminent sponsors in the San Diego area,” said Drew D. Fung, Head of Debt Investment for Clarion Partners.
The two residential projects benefit from the many demand drivers for the area, according to Bressler. Located in the center of San Diego, the area enjoys one of the highest household incomes in San Diego, driven by its excellent schools and strong employment base, which includes the corporate headquarters of San Diego Gas and Electric, Northrup Grumman, Kaiser Permanente and Solar Turbines.
Tim Wright and Aldon Cole in the San Diego office of HFF arranged the financing.
About Mesa West Capital, LLC
Mesa West Capital (www.mesawestcapital.com) is a privately held debt fund manager and portfolio lender with more than $4.5 billion in assets under management. With offices in Los Angeles, Chicago and New York City, Mesa West has been one of the leading providers of commercial real estate debt since its founding in 2004. Mesa West provides non-recourse first mortgage loans for core/core-plus, value-added or transitional properties throughout the United States. Mesa West’s lending portfolio includes all major property types, with loan sizes ranging from $20 million up to $300 million. Since inception, the firm has sourced and closed more than 245 transactions totaling in excess of $10 billion.
About Clarion Partners
Clarion Partners, an SEC registered investment adviser, FCA authorized manager and FINRA member firm, has been a leading U.S. real estate investment manager for more than 35 years. Headquartered in New York, the firm has offices in Atlanta, Boston, Dallas, London, Los Angeles, São Paulo, Seattle and Washington, DC. With more than $43 billion in total assets under management, Clarion Partners offers a broad range of real estate strategies across the risk/return spectrum to its 300 domestic and international institutional investors. More information about the firm is available at www.clarionpartners.com.