In two separate transactions, Mesa West Capital has funded $73.3 million in floating rate non-recourse loans secured by multifamily communities in Phoenix, AZ.
In the larger of the two financings, Mesa West provided a joint venture between Optima and DeBartolo Development with $49.8 million in first mortgage debt to refinance Optima Sonoran Village in Old Town Scottsdale.
The loan is secured by the 206-unit first phase of a planned three-phase, high-rise multifamily development. The Class A apartment community located at 6895 East Camelback Road across from the two-million square-foot Scottsdale Fashion Square, features condominium level finishes such as granite countertops, stainless steel appliances, and in-unit washer and dryer. The property shares a 19,000-square-foot resident club with indoor basketball and racquetball courts, fitness center, indoor pool and spa and fully equipped locker rooms. It also includes two outdoor pools, putting greens, fire pits, picnic area and dog park. Old Town Scottsdale is considered the premier multifamily market in the greater Phoenix area and boasts the highest rents in the region.
“This was an opportunity to make a loan on a top tier asset in an affluent market with strong and experienced sponsorship,” said Vice President Jason Bressler who originated the loan out of the firm’s Los Angeles office.
Rocco Mandala in the Phoenix office of CBRE arranged the financing.
Mesa West also provided a joint venture led by Sunroad Enterprises with $23.5 million in first mortgage debt to finance the acquisition of Sonoma Ridge Apartments, a 240-unit community in the Phoenix, AZ suburb of Peoria. Mesa West’s five-year, floating rate loan allowed San Diego-based Sunroad along with partners Security Properties and Loma Linda University to acquire the high-quality asset.
Sonoma Ridge features 18, two-story buildings on a 14.7acre site at 8201 W. Beardsley Road. Offering a mix of one-, two- and three bedroom units, the community is well amenitized with a clubhouse, resort-style pool, resident business center, picnic areas, fitness center and racquetball court.
Sonoma Ridge is well maintained having been institutionally owned and operated since it was developed in 2002. A multi-million capital improvement program that will include significant interior unit, exterior and amenity renovations will help the sponsor capture premiums on the current below market rents at the property, according to Bressler.
“Sunroad and Security Partners are good Sponsors with significant local experience and a strong business plan to renovate the asset and increase rents,” added Bressler.
Aldon Cole and Tim Wright in the San Diego office of HFF arranged the financing.