Mesa West Capital has provided more than $104m in first mortgage debt on the acquisition of two transitional properties in Dallas, Texas.
An $81.3m loan to GEM Realty Capital and Cawley Partners funds the purchase of a two-building office complex called Lakeside Campus.
A portion of the five-year, non-recourse loan will be used for lobby and common area renovations, as well as lease up costs associated with the departure of State Farm Insurance and Frontier Communications, who currently occupy the entire complex on short-term leases.
The 812,000 sq ft office campus at 2201 and 2221 Lakeside Boulevard, built in 1991 as headquarters for Nortel Networks, features a 16-story tower and a three-story, low-rise building. The sponsor executed a 400,000 sq ft long-term lease with online property management firm Real Page for the entire low-rise building at closing.
“The Lakeside Campus has long been an icon in the Telecom Corridor and enjoys tremendous visibility along North Central Expressway,” said Mesa West Capital principal Steve Fried, who originated the financing. “This is an attractive property in a strong Dallas submarket that is benefiting from significant corporate relocations.”
Mesa West also provided AHC Funds with a $23m first mortgage loan for the acquisition and stabilization of the 228-unit Southern Villas, an apartment community in Dallas’s Galleria submarket.
Built in 1998, the asset includes a mix of studio, one-and two-bedroom apartment homes. The sponsor plans to add value by upgrading interior units and common area amenities to capture premiums associated with comparable properties in the area.