Dealmaker: Mesa West Capital Originates $85M for Minneapolis Multifamily

Mesa West Capital, Los Angeles, provided Minneapolis-based multifamily investment firm Bader Diamond Funds with $85 million to acquire Hampshire Hill, a Bloomington, Minn., apartment community.

Murray Kornberg, Executive Vice President of Commercial Lending in Colliers International’s Minneapolis office, arranged the financing.

The 534-unit community, located at 10660 Hampshire Avenue about 15 miles southwest of downtown Minneapolis, was 96 percent occupied at closing. Built in 1987 and partially renovated in 2019, the property represents a value-add opportunity for the new owner because 60 percent of units remain in their original condition or have received only partial renovations, Mesa West Capital Executive Director Matthew Snyder noted.

“The property, which currently operates at a discount to the competitive set in the submarket, will benefit from the sponsor’s cohesive renovation program allowing it to draft off the momentum of the Minneapolis suburban multifamily market, which has seen record demand and tightening vacancy rates,” Snyder said.