Mesa West Gives Angelo Gordon Partnership $80M to Buy Four Va. Offices


Mesa West Capital provided a partnership of Angelo Gordon & Co. and Atlantic Realty Companies two first mortgage loans, totaling $78.9 million, for the acquisition and stabilization of four-office buildings in Reston, Va., Commercial Observer has learned.

New York-based Angelo Gordon teamed up with local developer and manager Atlantic Realty Companies, which is based in Tysons Corner, Va., for the buy. The total acquisition cost was $82 million, said a source close to the deal who did not want to be identified.

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The first loan covers three approximately 100,000-square-foot office buildings called Reston Corner I, II, and III, in suburban Virginia. The buildings are about 58 percent occupied at the moment, said a representative for Mesa West. The mortgage totaled $45.6 million.

The other loan is secured by a single asset called Parkridge V, a five-story, 200,000-square-foot office building in the Parkbridge Office Park, built in 1999. Parkridge V is 38 percent leased and tenants include the regional office of Walmart, the spokesman said. That loan was for $33.3 million.

The blended loan to value ratio for the two loans was 72 percent.

A portion of the proceeds from each of the floating rate loans will be used to improve the buildings and bolster leasing efforts. The prices for the acquisitions were not disclosed.

“Angelo Gordon has been extremely successful partnering with local operators to identify institutional quality assets that are underperforming the market,” Mesa West Principal Raphael Fishbach told CO via email.  “We are confident our loans will provide the partnership with the capital, flexibility and structure to maximize the value of each of these properties.”

Eastdil Secured arranged the financing, another source close to the deal said.

The person who answered the phone in Angelo Gordon’s public relations department could not comment on the deal.