Mesa West Capital Originates $92.5 M Loan to Refinance Two Seattle Apartment Communities

LOS ANGELES - Jan. 21, 2025 - PRLog -- Mesa West Capital has provided RISE Properties Trust with $92.5 million in first mortgage debt to refinance two mid-rise multifamily communities totaling 266 units in Seattle, WA.

The five-year loan is secured by the 12-story, 131-unit Joseph Arnold Lofts and the six-story, 135-unit Jack Apartments.    Both mid-teen vintage properties are located in two of Seattle's most desirable submarkets, Belltown and Capitol Hill. Each have been recently renovated and are well-positioned within their respective neighborhoods to take advantage of strong demand drivers and downtown's improving post-pandemic multifamily fundamentals, according to Executive Director Josh Westerberg, who led the origination team out of the San Francisco office.

"Multifamily demand has been strong, which has helped offset the influx of new supply to the market," said Westerberg.   "As construction starts have halted, the new and upcoming supply should be fully absorbed in the next two years, which should help accelerate rent growth in the years to come."

Joseph Arnold Lofts was developed in 2013 and was acquired by RISE in 2019 with financing from Mesa West.   Benefiting from a recent renovation, which included upgrades to common areas and unit interiors, Joseph Arnold Lofts is positioned well among its mid-rise peers, while representing a slight value discount to brand new high-rise product.  Joseph Arnold is located at 62 Cedar Street one of Seattle's "green streets" in Seattle's Belltown neighborhood.  The property is one block from the Seattle waterfront and offers spectacular views of Elliot Bay, Olympic Mountains, the city skyline and the Space Needle. Highly walkable, the property has immediate access to amenities such as Pike Place Market, the Seattle Center and several restaurant / cafes / pubs along the 2nd Avenue retail district.

Jack Apartments was delivered to market in 2016 and was acquired by RISE two years later.  The property is located at 1427 11th Avenue in the popular Capitol Hill neighborhood known for its live music venues and restaurants.

Both properties offer a mix of desirable studio, one- and two-bedroom floorplans with luxury finishes.   Each offers a wide range of amenities including landscaped roof top decks, outdoor lounges and fitness centers.  Occupancy across the two-property portfolio was a combined 93%.

"Mesa West remains extremely bullish on well-located multifamily assets with strong sponsors such as RISE," added Mesa West Principal Steve Fried.  "We are seeing strong job growth in the Seattle metro area and an increase in demand downtown with return-to-work mandates, while at the same time construction starts are down.  As a result, we anticipate continued strong absorption rates and rental growth to climb at an accelerated pace within the next 12-18 months."

The financing was arranged by James Bach in CBRE's Seattle office.

About Mesa West Capital, LLC
Mesa West Capital (http;//www.mesawestcapital.com) is a leading commercial real estate debt fund manager and portfolio lender. With offices in Los Angeles, New York, Chicago, San Francisco and Houston, 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-add 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 $400 million. Since inception, the firm has sourced and closed more than 400 transactions totaling over $27 billion.