Dealmaker: Mesa West Capital Funds $59M Loan for Silicon Valley Office Building

Mesa West Capital, Los Angeles, provided a $58.7 million first mortgage to a joint venture between Goldman Sachs’ Merchant Banking Division and Lincoln Property Co. for a Mountain View, Calif. office building.

The five-year floating-rate loan is secured by 331 Fairchild, a three-story, 87,565-square-foot Class A property constructed in 2013 that is fully leased to Knowles Electronics through September 2023.   

Newmark Capital Vice Chairman Ramsey Daya arranged financing.

331 Fairchild

The joint venture said it plans a comprehensive capital improvement program to enhance the property to meet the strong demand by large technology companies looking to expand or establish a presence in Mountain View’s supply-constrained office market. Improvements will include modernizing the courtyard entrance and upgrading the lobby and indoor spaces. Some of Mesa West Capital’s loan proceeds will fund the capital improvement program along with tenant improvements and leasing commissions associated with the building lease up if Knowles Electronics decides to let its lease expire.

The property fronts U.S. Highway 101 across from Moffett Field. Mountain View, located between Palo Alto and Sunnyvale, is home to Google parent company Alphabet. Other corporate neighbors include Samsung, Intuit and LinkedIn.

“Historically, Mountain View has been more stable and has seen less volatility compared to other submarkets in the Bay Area, and we expect that to continue during these extraordinary times,” said Josh Westerberg, Director in Mesa West Capital’s San Francisco office, who led the origination team with Principal Ronnie Gul. “Overall, Mountain View ranks among Silicon Valley’s strongest submarkets particularly for technology companies attracted by the area’s talent base.”