Mesa West Capital has provided a $40.8 million first mortgage on a 1 million sq ft mixed-use campus outside of Boston, Massachusetts.
The three-year loan with two one-year extension options was made to a joint venture between Saracen Properties and Artemis Real Estate Partners and refinances the newly rebranded Mill & Main.
The joint venture purchased the mortgage on the Maynard, Massachusetts property, formerly “Clock Tower Place,” from JP Morgan in February 2015 and acquired the asset a month later through a deed-in-lieu of foreclosure. The plan and permit requests for the venture’s first redevelopment phase was approved by the local planning board in November of 2015.
Loan proceeds will be used to implement a capital improvement and leasing plan to reposition the property, including the removal of certain buildings to create more open space and exterior renovations to exiting structures. Other improvements will include updated building systems, pedestrian plazas, a waterfront boardwalk, fitness facilities and boutique retail and gallery venues.
“Artemis and Saracen have already started to make headway at the property, and our loan is customized to allow them to continue their effort to reposition and lease up the asset,” said Daniel Tanner, a Mesa West vice president who originated the financing, in a prepared statement.
The property is currently 37 percent leased, including a recently signed lease with Stratus Technologies for 102,000 sq ft, which is set to commence this Spring. Originally constructed in 1847, it served as a woolens mill until 1950 when it was converted to an office park. It was also the headquarters for Digital Equipment Corporation from 1974 to 1993.
This was Mesa West’s first transaction with Saracen and Artemis. HFF arranged the loan.