Dealmaker: Mesa West Capital Lends $91M for Texas Office

Mesa West Capital, Los Angeles, provided KBS Realty Advisors, Newport Beach, Calif., with $90.5 million to recapitalize its recent all-cash acquisition of an Austin, Texas office campus.

The five-year floating-rate loan is secured by Stonebridge Plaza I & II, two nine-story office buildings and a seven-story parking garage on a five-acre campus in northwest Austin. The 386,000-square-foot property occupies the intersection of highways 183 and 360 near high-end retail amenities at both the Domain and Arboretum.

Completed in 1999 and 2001, the two institutional-quality office buildings are currently 96.5 percent leased.

Some loan proceeds will go toward costs to renew existing leases or re-tenant the buildings if needed, said Mesa West Capital Principal Steve Fried, who led the origination team.

“The sponsor acquired an iconic asset with below-market in-place rents,” Fried said, noting that KBS plans to leverage the building’s access, location, floor plans and parking to both retain and attract that large corporate users that continue to relocate to Austin.

Fried said Mesa West Capital originated the loan out of its open-ended Mesa West Core Lending Fund, which provides first mortgage loans up to $300 million.