Dealmaker: Mesa West Capital Originates $65M for Los Angeles Apartments
Mesa West Capital, Los Angeles, provided Newport Beach, Calif.-based Sares-Regis Group with $65 million in first mortgage debt to acquire a 169-unit multifamily community in Los Angeles’ Mid-Wilshire neighborhood.
Mesa West Capital’s five-year floating-rating loan is secured by The Preston, a four-story, high-density community at 630 Masselin Avenue. The property has studio, one- and two-bedroom floorplans and a 336-car parking garage with electric vehicle charging stations.
Located one-half block north of Wilshire Boulevard in what is commonly referred to as The Miracle Mile, the neighborhood includes 1.2 million square feet of retail, entertainment and dining options as well as Los Angeles’s “Museum Row,” which includes the Los Angeles County Museum of Art, the La Brea Tar Pits and the Petersen Automotive Museum. The Academy Museum of Motion Pictures at Fairfax and Wilshire will open nearby in December.
The Preston is also within walking distance of two future subway stations along the Metro Rail’s Purple Line extension. When completed in 2023, both the Fairfax and La Brea Metro stations will offer access to downtown Los Angeles. Phase II and III of the expansion, due to open in 2025 and 2027, respectively, will extend the line west to Beverly Hills, Century City and Westwood.
Sares-Regis Group will immediately begin a multi-million-dollar capital improvement campaign focusing on exterior, common area and amenity upgrades to create a more contemporary aesthetic. The plan also includes renovations to apartment interiors as units roll.
Mesa West Capital Director Joshua Westerberg led the origination team from the private lender’s San Francisco office.
CBRE Capital Markets Vice Chairman Jesse Weber and Vice President Scott Williams arranged the financing.