Mesa West Capital Acquires $30 Million Loan Secured by America Center in San Jose, CA

Jan. 17, 2012 - PRLog -- San Jose, CA – Mesa West Capital has acquired from an affiliate of AllianceBernstein U.S. Real Estate Partners a $30.3 million first mortgage loan secured by America Center in North San Jose, which is made up of two brand new Class A office buildings totaling 426,663 square feet, announced Mesa West Principal Ronnie Gul.  

America Center was developed in 2009 on a 30-acre bay front site by current owner Legacy Partners.  The loan on the property was re-structured this past year with an affiliate of AllianceBernstein U.S. Real Estate Partners, which acquired the construction loan at a discount.  As part of the re-structure, Legacy infused a significant amount of fresh equity.      

Mesa West has been one of the most active value-add lenders on high-quality office product in Silicon Valley.  In addition to America Center, Mesa West recently provided the acquisition financing on the 310,000 square-foot Central Campus in Santa Clara and purchased the note on the 955,000 square-foot first phase of Moffett Towers in Sunnyvale.  Mesa West sees this deal as an opportunity to hold a loan at a low cost basis on one of the last remaining newly constructed institutional assets in Silicon Valley, according to Gul.

“Much of what was behind our decision to deploy more than $200 million on nearly 1.7 million square feet of largely vacant office space in Silicon Valley in the past year, is the continuing demand by fast growing technology companies for high quality buildings,” says Gul who is responsible for originations in Northern California. “Testimony to the velocity of the market is that leases totaling more than 800,000 square feet have been signed at the assets securing those loans in just the past nine months by tenants such as Microsoft and Motorola Mobility.”

America Center, which was 100 percent vacant at the time of closing is now 81 percent leased to two tenants.  Videoconferencing company Polycom, Inc. will relocate from Pleasanton after signing a long-term lease to occupy one of the 213,000 square foot buildings and electronics manufacturing services company Flextronics, Inc. will relocate from Fremont after signing a long-term lease to occupy 130,000 square feet.   Both Polycom and Flextronics will maintain their corporate headquarters at America Center.

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About Mesa West Capital
Los Angeles-based Mesa West Capital (http://www.mesawestcapital.com) is a privately held portfolio lender with a capital base of more than $2 billion. Mesa West has an established debt platform that continues to provide flexible and reliable capital for real estate acquisitions, re-financings and re-capitalizations on office, retail, industrial, multifamily and hotels in the United States.