Dealmaker: Mesa West Capital Originates $68M for Office, Retail, Multifamily

Mesa West Capital, Los Angeles, originated $37.5 million that Tucker Development, Highland Park, Ill., and Acadia Realty Trust, Rye, N.Y., will use to reposition 10 vacant buildings in Chicago’s Fulton Market district. 

Tucker Development acquired the 91,000-square-foot portfolio in January. It will use the proceeds from Mesa West’s five-year floating-rate loan to preserve and rehabilitate the two- and four-story brick buildings, some of which date back to 1890. 

Tucker Development will rebrand the buildings–which occupy nearly a full city block at Randolph and Sangamon Streets–as 900 West. Scheduled for a spring 2017 completion, 900 West will include 45,000 square feet of creative office space and 46,000 square feet of street-level and second-story retail. 

“The Fulton Market submarket has continued to strengthen and attract quality office and retail tenants and is fulfilling the promise we saw 18 months ago when we financed Google’s regional headquarters building,” Mesa West Vice President Matthew Snyder said. “Since announcing their plans, the sponsor has already received significant interest from a variety of office users and national, regional and local retailers.”

In a separate financing, Mesa West provided a joint venture led by Golub & Co., Chicago, with $30.2 million in short-term financing to acquire a 20-story multifamily asset in Chicago’s Edgewater district. The floating-rate non-recourse loan is secured by Lake Shore Tower at 5600 North Sheridan Road. 

Snyder said some loan proceeds will go toward a capital improvement program. “Once renovations are completed, Lake Shore Tower will be a first-to-rent asset in Chicago’s fundamentally strong Edgewater multifamily market,” he said.