Mesa West Capital has provided a $68m loan to Prudential Real Estate Investors and GlenStar Properties for the acquisition and repositioning of 311 West Monroe in downtown Chicago, Illinois.
The Los Angeles-based lender has been active this month with a string of loans that included the $220m financing of a Chicago trophy tower and a $48m loan to Laurus Corporation in its home state. Mesa West’s loans are typically five-year floaters.
The sponsor plans to reposition the 364,000 sq ft property through a renovation and new leasing campaign following anchor tenant BMO Harris Bank’s departure in December, which left the building more than 80% vacant.
The joint venture purchased the 15-story office property for a reported $58m from Golub & Co. and a Goldman Sachs affiliate the previous month. The previous joint venture had paid $44m for the property in June 2012.
Mesa West principal Ronnie Gul, who originated the financing for Mesa West Capital, said the combination of strong sponsorship in a key location, in downtown Chicago’s West Loop neighborhood, should enable the asset to “outperform the market” once the renovation is complete. Eastdil Secured arranged the financing.