Dealmaker: Mesa West Capital Originates $29.7M for North Carolina Acquisition

(The Ellery of Cary, courtesy of Mesa West Capital)

Mesa West Capital, Los Angeles, provided McDowell Properties with a $29.7 million first mortgage loan to acquire and renovate a multifamily community in Cary, N.C.

The property–The Ellery of Cary–features 194 units and was built in 1988. It is located between Raleigh and Durham, in the state’s famed Research Triangle.

The prior owner recently completed several capital improvements, including a new roof, exterior upgrades and common area enhancements, but all the units remain in original condition, providing a value add opportunity.

“In-place rents are well below those of renovated comparable properties in the submarket, providing a significant opportunity to drive rental growth,” said Josh Westerberg, Mesa West Capital’s head of the Western Region, who led the origination team out of Los Angeles alongside JJ McMahon. “With the recent supply wave moderating, a declining development pipeline and continued population growth in the market, we believe sustained renter demand can support the sponsor’s ability to successfully execute their business plan.”

The financing was arranged by Trevor Brotman, Tricia Linden and Kara Profitt from Walker & Dunlop, Bethesda, Md.