Mesa West writes $91m Austin loan out of core lending fund

Mesa West Capital has provided KBS Realty Advisors with a $90.5 million first mortgage loan to recapitalize its recent all-cash acquisition of Stonebridge Plaza I & II, a 386,000 sq ft Class A office campus in Austin, Texas.

The five-year, floating-rate loan is secured by two nine-story LEED-certified office buildings and a seven-story parking garage on a five-acre campus at 9600 and 9606 N. MoPac Expressway in Northwest Austin.

Mesa West originated the loan out of its open-ended Mesa West Core Lending Fund, which provides first mortgage loans up to $300 million.

A portion of the loan proceeds will be used for costs associated with lease renewals, and to re-tenant the buildings if needed.

“The sponsor acquired an iconic asset with below market in place rents,” said Mesa West principal Steve Fried, who led the origination team out of the private lender’s Los Angeles office, in a statement.

“Northwest Austin is one of the foremost corporate locations in the market. We are confident that KBS will be able to successfully leverage the building’s superior aesthetics, strong access and location, efficient floor plans and excellent parking to both retain and attract large corporate users that have been drawn to Austin.”

The property sits at the intersection of Highways 183 and 360, near retail amenities at the Domain and Arboretum. Completed in 1999 and 2001, the two office buildings are collectively 96.5 percent leased.