Dealmaker: Mesa West Capital Funds $140M Loan for Colorado Multifamily

Mesa West Capital, Los Angeles, provided $139.8 million in first mortgage debt for Terracina Apartments, a 386-unit multifamily property in Broomfield, Colo.

Terracina Apartments, Broomfield, Colo.

Sares Regis Group, Newport Beach, Calif., acquired and is repositioning the asset at 13620 Via Varra Road in metro Denver. Some proceeds from the five-year floating-rate loan will fund the sponsor’s capital improvement plan, including upgrades to unit interiors and community common areas.

“Broomfield is uniquely positioned between Denver and Boulder, pulling from those major economic engines with more affordable housing options,” said Mesa West Capital Executive Director Josh Westerberg, who led the origination team from the private lender’s San Francisco office. “The area’s consistent annual rent growth is proof of that attractive market dynamic.”

Broomfield has experienced tremendous growth, outperforming surrounding metro Denver cities over the past decade. Westerberg noted skilled millennials are drawn to the city’s quality of life and much lower housing costs than Denver. Terracina Apartments offers residents quick connections to Broomfield’s major employers, including Vail Resorts, VMware, OpenText, Crocs and SCL Health. Oracle leases more than one million square feet across six buildings in the city.

Built in 2010, the 16.5-acre Terracina Apartments has one- and two-bedroom apartment homes housed in four four-story residential buildings. The property was 95.1 percent leased at closing.