Dealmaker: Mesa West Capital Provides $77M for Florida Apartment Community

Mesa West Capital, Los Angeles, provided $77 million in first mortgage debt for Alta Congress, a 369-unit multifamily property in Delray Beach in Palm Beach County, Fla.

Built in 2013, the four-story community occupies 9.3 acres at 250 Congress Park Drive, within walking distance to downtown Delray Beach’s Atlantic Avenue shopping district. USA Today named the one-mile stretch of Atlantic Avenue that ends at the Atlantic Ocean one of the 10 best urban shopping centers in America.  

The attractive employer base in both the immediate and surrounding areas increases apartment demand in Delray Beach, said Mesa West Vice President Brian Hirsh, who led the origination team.

“The existing Class A multifamily inventory in Delray Beach is extremely limited and the barriers to entry for new supply in the market are high,” Hirsh said.  “With the Palm Beach metro experiencing significant population and job growth resulting partly from the migration of people from highly dense urban areas, this well-located asset is expected to continue to perform well during the sponsor’s hold period.”

Hirsh said the property, 96 percent leased at closing, will be rebranded Congress Grove Apartments. Newmark Vice Chairman Purvesh Gosalia arranged the five-year floating rate non-recourse loan.