Mesa West Lends $73M Across Two Multifamily Deals in Arizona
National lender Mesa West Capital has provided two floating-rate, nonrecourse loans totaling $73.3 million for two Arizona multifamily properties, Commercial Observer can first report.
Jason Bressler, a vice president based in Mesa West’s Los Angeles office, originated a $49.8 million mortgage for the Optima Sonoran Village in Scottsdale, Ariz., and a $23.5 million loan on the Sonoma Ridge Apartments in the Peoria suburb of Phoenix. Both deals closed last month.
The first transaction was a $49.8 million first mortgage on the 206-unit Optima Sonoran Village at 6895 East Camelback Road in Scottsdale, Ariz. The borrower, a joint venture between Illinois and Arizona developer Optima and Florida-based DeBartolo Development, is using the loan to refinance an old commercial mortgage-backed securities note Annaly Capital Management provided in 2013.
“The rate was higher, and this was an opportunity to lower the overall cost,” Mr. Bressler told CO.
Rocco Mandala, an executive vice president in CBRE’s Phoenix office, arranged the debt, which carries a three-year term with two one-year extension options.
“This was a new relationship for the firm,” Mr. Bressler said. “We were very excited to work with really high-quality developers and sponsors like Optima and DeBartolo, and we got the relationship through our mortgage broker in Phoenix, who is a longtime friend of the firm and helped us position ourselves to win the business.”
The property is located across from the 2-million-square-foot Scottsdale Fashion Square shopping center and is near many restaurants and nightlife, which is a big attraction for tenants, he added. There is also a 19,000-square-foot clubhouse in the apartment community, which has indoor basketball and racquetball courts, a fitness center, an indoor pool and spa. There are also two outdoor pools, fire pits, a picnic area and a dog park on site.
In the second deal, Mesa West provided a Sunroad Enterprises-led joint venture with a $23.5 million acquisition loan for Sonoma Ridge Apartments, a two-building, 240-unit multifamily complex at 8201 West Beardsley Road.
HFF’s San Diego team of Aldon Cole, a senior managing director, and Tim Wright, a senior managing director, brokered the loan, which carries a five-year term and floating rate.
San Diego-based Sunroad, along with Security Properties and Loma Linda University Endowment Fund’s multifamily investment platform, acquired the 14.7-acre property for $30.2 million last month, according to a press release. The complex contains a mix of one-, two- and three-bedroom units, as well as a pool, a business center, a fitness center and a racquetball court. The sponsorship plans on upgrading the Sonoma Ridge’s interior units, exterior and amenities.
“Sunroad and Security Partners are good sponsors with significant local experience and a strong business plan to renovate the asset and increase rents,” Mr. Bressler said.
Representatives for Optima, DeBartolo, Sunroad and Security Properties did not respond to requests for comment.