Dealmaker: Mesa West Capital Originates $68.5M for Los-Angeles Area Property

(Image courtesy of Mesa West Capital)

Mesa West Capital, Los Angeles, originated $68.5 million in short-term financing for Legacy Partners and PGIM Real Estate’s acquisition of a multifamily community in Azusa, Calif.

Azusa is situated in Los Angeles’ North San Gabriel Valley, about 20 miles east of downtown Los Angeles.

The five-year, interest-only, floating-rate loan is secured by University Village, a 320-unit, garden-style apartment community near Azusa Pacific University. Previously used for student housing, it was sold to the sponsor, who will begin transitioning it to a traditional multifamily rental community, to be called Citrus Place.

A portion of the loan proceeds will be used to implement a light value-add strategy that will include upgrades to unit interiors and common area amenities, and address deferred exterior maintenance issues.

“With no new construction projects in the pipeline–helping to alleviate supply-side pressure both now and in the future–along with persistent demand, we expect the local multifamily market to sustain strong fundamentals into the foreseeable future,” said Joshua Westerberg, Head of Originations for the Western Region at Mesa West Capital.

The financing was arranged by Ryan Greer, CJ Connolly and Spencer Beckwith in the Los Angeles office of CBRE, Dallas.