Dealmaker: Mesa West Capital Provides $83M for Seattle Apartment Community

(Illustration courtesy of Mesa West Capital)

Mesa West Capital, Westlake Village, Calif., provided an $82.5 million first mortgage loan to a joint venture between Harrison Street Asset Management and Security Properties to refinance an apartment community in Seattle suburb Everett, Wash.

The subject property, Olin Fields, is a 352-unit garden-style community on 16 acres. Community amenities include a fitness center, indoor basketball court, indoor and outdoor pools, an outdoor lounge with fire pits and barbeques and a dog park.

Mesa West noted that since acquiring the property in 2022, the sponsor has invested significantly in exterior improvements and renovations to 76 units. A portion of the loan proceeds will complete the remaining interior upgrades, bringing the property to a consistent, institutional quality finish level.

Olin Fields is located near Interstate 5 in Everett’s Holly submarket, 25 miles north of downtown Seattle. Local employment drivers include advanced manufacturing, aerospace, healthcare and logistics firms. Boeing’s Everett Manufacturing Facility—the largest manufacturing building in the world by volume and home to 30,000 employees—is a 10-minute drive away.

CoStar, Washington, D.C., reported that year-to-date rent growth in the Holly submarket is 4.9%, significantly outpacing the greater Seattle market, which has not experienced any rent growth this year.

“The Holly submarket has had no meaningful deliveries since 2014, with more than half of the existing inventory consisting of pre-1995 product,” noted Josh Westerberg, head of Mesa West Capital’s west region. He led the origination team from San Francisco along with JJ McMahon.

CBRE’s San Francisco office arranged the five-year non-recourse financing, led by Jesse Weber, Scott Williams, and Kevin Coyle.