Mesa West Closes Debt Fund with More than $614.5M in Commitments
Jul 8, 2010 11:38 AM
Mesa West Closes Debt Fund with More than $614.5M in Commitments
Mesa West Capital, a privately held commercial real estate finance company, closed Mesa West Real Estate Income Fund II, LP with more than $614.5 million in commitments. Mesa initially targeted $400 million in commitments for the debt fund.
The fund will allow Mesa West Capital to continue originating bridge financing with an emphasis on first mortgage debt for middle-market sized transitional and value-add assets in Western U.S. and gateway cities on the East Coast.
“This latest fund allows us to continue to provide necessary liquidity to the commercial real estate market,” said Ryan Krauch, Mesa West principal, in a statement. “Whether our borrowers are acquiring new assets, or are recapitalizing existing investments, Mesa West will continue to provide affordable, non-recourse financing for value add and transitional assets.”
Mesa West has already originated more than $160 million in loans for Mesa West Real Estate Income Fund II. Three more loans are expected to close in July.
NY Private Equity Fund Wins Mall Auction for $61M
Angelo, Gordon & Co., a New York-based private equity fund, received approval from the federal bankruptcy court to purchase a loan on the Shops at Georgetown Park, a 315,000-square-foot mall in Washington, D.C., for $61 million.
Western Development purchased the mall in 2006 for $84 million using financing provided by Capmark Financial Group. Capmark filed for bankruptcy protection in 2009 and Western Development defaulted on its loan in March of this year, partly due to inability to lease a significant portion of the property. As a result, the mall went to auction on June 25.
Western Development might be retained by Angelo, Gordon & Co. as a developer for the property on a fee basis.
Glimcher Closes $45M Mortgage on Grand Central Mall
Glimcher Realty Trust closed a $45 million mortgage secured by Grand Central Mall in Parkersburg, W.Va. Goldman Sachs Commercial Mortgage Capital L.P. originated the loan, which is structured to be sold into the CMBS market. The loan features a 10-year term and a fixed interest rate of 6.05 percent. Glimcher will use the proceeds to retire $39.3 million in secured mortgage debt on the mall that was scheduled to mature in February 2012 and to reduce outstanding borrowings on its credit facility.
Cedar Shopping Centers Secures $33M for Pennsylvania Properties
Cedar Shopping Centers Inc. placed a $33 million first mortgage on three supermarket-anchored centers owned by a joint venture of Cedar Shopping Centers and RioCan Real Estate Investment Trust. New York Life Insurance Company provided the mortgage. It features a five-year term with a fixed interest rate of 5 percent, a loan-to-value ratio of 50 to 55 percent and a 30-year amortization schedule. The loan is cross-collateralized by the mortgages on the three properties. All of the properties are located in Pennsylvania and anchored by Giant Food Stores.
Of the aggregate amount of the loan, $17.75 million has been allocated to Blue Mountain Commons, a 121,000-square-foot shopping centers in Harrisburg. Another $11 million has been allocated to the Town Square Shopping Center, a 128,000-square-foot property in Temple. In addition to the Giant Food Stores, Town Square Shopping Center is anchored by an AC Moore store and a PetSmart and shadow-anchored by a Target.
The remaining $4.25 million has been allocated to Sunset Crossing, a 74,000-square-foot shopping center in Dickson City.
All of the properties were contributed to the Cedar/RioCan joint venture between December 2009 and January 2010. The net proceeds from the transaction, estimated at $7 million, will be used to reduce the outstanding balance under Cedar’s $285 million floating rate credit facility for stabilized properties to approximately $75 million.
CBRE Completes Sale of Hawaii Mall for $25.7M
CB Richard Ellis Hawaii and CB Richard Ellis’ national retail investment group-west negotiated the sale of Waianae Mall, a 170,275-square-foot retail center in Waianae, Hawaii, from 3D Investments to TNP Acquisitions for $25.7 million. The buyer assumed a conduit-style loan of approximately $20.7 million, with an interest rate of 5.39 percent. The loan is due in November 2017.
The mall houses 43 tenants, including anchors Longs Drugs and City Mill.
Scott Gomes, Phil Voorhees, Todd Goodman and Patrick Toomey, of CBRE, represented both parties in the transaction.
Marcus & Millichap Sells Net-Leased Lowe’s for $17.6M
Marcus & Millichap Real Estate Investment Services negotiated the sale of a 171,069-square-foot Lowe’s store in Shippensburg, Pa. for $17.6 million. The sales price represents $103 per square foot. The property was sold with an assumable 22-year self-amortizing loan with a 7.2 percent rate and 20 percent down.
Lowe’s recently signed a 22-year triple-net lease for the store.
Chris Rea, first vice president of investments, and Brian Munn, senior associate in Marcus & Millichap’s Atlanta office, represented the seller in the transaction. Jason Cropper, a retail investment specialist in the firm’s Little Rock office, represented the buyer. Spencer Yablon, a regional manager in the Philadelphia office, also provided representation.
Other Notable Deals
Holliday Fenoglio Fowler L.P. secured $8.6 million in post-closing acquisition financing for an 82,957-square-foot Kohl’s store in Redondo Beach, Calif. The loan, placed with the Nationwide Life Insurance Co., features a fixed rate and a five-year term. Holliday Fenoglio’s client purchased the property in July of last year for $17.25 million. Kohl’s has 18 years left on its lease. The two-level store is part of the South Bay Galleria mall.
TNP Strategic Retail Trust Inc. acquired Northgate Plaza Shopping Center, a 103,500-square-foot retail property in Tucson, Ariz., for $8.05 million. The center sits on 7.8 acres of land and is anchored by a Wal-Mart Neighborhood Market. The Wal-Mart occupies 41 percent of the rentable square footage and has a lease until May 2025. The remaining tenants include Dollar Tree, Rent-A-Center, Burger King, Subway and RadioShack. Overall, the property is 81 percent leased.
Charles Dunn Co. negotiated the sale of a 20,590-square-foot retail building in Arvada, Colo. from Drake Real Estate to IMT Khougaz LP for $3.59 million. The one-story freestanding building sits on more than 1.5 acres of land and is occupied by Office Depot. The retailer has 13 years left on its lease.
Paul A. Kenworthy, of Charles Dunn, represented the buyer and acted as a consultant for the seller in the transaction.
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