Dealmaker: Deal Mesa West Capital Funds $72M Loan for Texas Office

Mesa West Capital, Los Angeles, provided affiliates of fund manager Equus Capital Partners $72.1 million in short-term debt to acquire, reposition and stabilize Legacy Place in Plano, Texas.

Built in 1998, 300,000-square-foot office campus Legacy Place has two identical six-story office buildings with 27,000-square-foot floor plates and two parking structures on 15.3 acres in Plano’s Legacy micromarket. The property has immediate access to the Dallas North Tollway to U.S. Highway 380 in Frisco. This transportation pipeline contributes to Plano’s strong office market performance. The city’s office vacancy rate recently fell to 5.1 percent. Legacy Place was 87.7 percent leased at closing.

The Dallas Morning News reported L&B Realty Advisors, Dallas, sold the property.

Some loan proceeds from the five-year non-recourse loan will fund capital improvements including renovating building lobbies and common areas, elevator modernization and new HVAC systems.

“Legacy Place I and II are high-quality assets that will be significantly improved with the sponsor’s capital plan,” said Mesa West Vice President Brian Hirsh, who originated the loan from the firm’s Chicago office. “This building modernization program will allow these buildings to directly compete with other Class A offerings in Legacy, a submarket that has been experiencing robust tenant demand.”