Mesa West Acquires $130 Million Note on Silicon Valley Development

Nov. 22, 2010 - PRLog -- LOS ANGELES -- Mesa West Capital has acquired from Morgan Stanley a $130 million note secured by three Class A office towers totaling 951,000 square feet within Moffett Towers, a recently built office campus in Sunnyvale, Calif., announced principal Ronnie Gul.
         Developed by San Francisco-based Jay Paul Company and completed in 2008, Moffett Towers is comprised of six, multi-story steel, stone and glass LEED-certified office towers totaling 1.6 million square feet on 52 acres of land.  The project also includes a stand-alone 40,000 square-foot fitness center with junior Olympic sized-pool as an amenity for tenants.  Situated at the juncture of Highways 101 and 237, Moffett Towers is considered to be at the geographic center of California's famed Silicon Valley.
         The collateral on the note includes Phase I of the office campus comprised of the three largest and most prominent buildings.   The collective occupancy of the three buildings is 13 percent following a recently signed 125,000 square-foot lease with Rambus.
         “This note purchase fits perfectly within our lending platform of financing high-quality, well located transitional assets backed by strong local sponsors,” says Gul.  “Moffett Towers is a high profile, first-to-lease asset that's uniquely positioned to capture the expected increase in demand for class A office space,” says Gul. “Much of the available inventory in Silicon Valley is older and outdated, and while largely vacant we believe Moffett Towers is well positioned to take advantage of the flight to quality as fast-growing technology companies seek to upgrade their image with higher quality space.”
         The note sale was arranged by Noble Carpenter and Michel Seifer of Jones Lang LaSalle.
         In a separate transaction, Mesa West Capital has provided a $17.5 million loan for the purchase and lease up of Two Addison Circle, a vacant 198,484 square-foot Class A office building in the North Dallas suburb of Addison, Texas.  
         Built in 2009, the six-story LEED-certified brick and glass building with structured parking for 735 cars, was recently acquired by Brookfield Real Estate Opportunity Fund.             
         “This represents another example of Mesa West Capital's ability to close on a first class asset with superior sponsorship,” adds  Mesa West director Raphael Fishbach who originated the loan.  
         The financing was arranged by the Dallas office of Holliday Fenoglio Fowler.
         Mesa West Capital provided the financing through its $614.5 million Mesa West Real Estate Income Fund II, LP, which closed in June 2010. Currently Mesa West has originated nearly $200 million in financings through Fund II.    Mesa West's first fund originated $1.5 billion in 83 financings.

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About Mesa West Capital, LLC
Mesa West Capital http://mesawestcapital.com is a leading commercial real estate capital source. With offices in Los Angeles and New York Mesa West Capital provides flexible and reliable capital for value-added and stabilized commercial real estate projects. Mesa West Capital is a non-recourse portfolio lender with a capital base over $2.0 billion that has continued to provide financing throughout the current credit market turmoil.