Dealmaker: Mesa West Capital Originates $40M for Austin Apartments

Mesa West Capital, Los Angeles, originated $40 million in first mortgage debt to finance an off-market acquisition of a 309-unit Austin, Texas apartment property.

Elan Parkside

Buyer SPI Advisory, Dallas, received a five-year floating-rate loan for Elan Parkside, a Class A multifamily asset within Highland, a large-scale redevelopment of a shuttered regional mall in central Austin. When complete, the Highland redevelopment will include 1,200 residential units, 200 hotel rooms, 800,000 square feet of commercial office space and 1.3 million square feet of Austin Community College academic space.

The Austin Business Journal reported GUGV Highland Austin Property Owning LLC, Austin, sold the property.

Located at 609 Clayton Lane, Elan Parkside dates to 2017. The six-story property includes studio, one- and two-bedroom floorplans, currently 97 percent occupied, and 5,500 square feet of ground-floor retail space.

“While the pandemic has introduced some instability to the Austin apartment market similar to many other metro areas, we believe the MSA is still poised to be a long-term winner,” said Mesa West Capital Vice President Brian Hirsh, who led the origination team.

JLL Capital Markets Senior Managing Director Andy Scott and Senior Director Michael Cosby arranged the financing.