Mesa West Capital has originated a $56.8 million first mortgage loan to the owners of the Northbridge Centre, a Class A office building in West Palm Beach, Florida.
The floating rate loan finances the acquisition and includes a future funding component to be used towards renovations and leasing costs associated with the stabilization of the building, Real Estate Capital has learned.
Mesa West VP Russell Frahm, who covers the southeast, noted that increased demand and a lack of new office supply in Downtown West Palm Beach have resulted in “a steady increase in rents and occupancy, which we expect to continue over the next several years.”
An affiliate of connecticut’s Greenfield Partners reportedly acquired the 287,000 sq ft property at 515 North Flagler Drive from Gaedeke Group for just over $68 million, and Gaedeke Group paid a reported $24 million for the property in 1993.
Built in 1987 and renovated in 2002, the building offers unobstructed views of the Intracoastal Waterway, Palm Beach and the Atlantic Ocean. The property was 71 percent leased at closing.