Mesa West Lends $52M on Acquisition of Seattle Multifamily Tower
Rise Properties Trust and Cigna Investment Management have nabbed a $52 million loan for their purchase of Joseph Arnold Lofts — a 131-unit loft-style multifamily building in Seattle, Wash.
Mesa West Capital provided the five-year, non-recourse financing, which will fund both the asset’s acquisition and its repositioning, the lender announced today.
The 12-story apartment building — also known as ‘The Joe’ — is located at 62 Cedar Street in Seattle’s Belltown neighborhood, and within walking distance to Pike Place Market.
Built in 2013, the property features floor-to-ceiling windows and its amenities include a fitness center, a business center, a tenant lounge and a rooftop deck with barbecues, a fire pit and outdoor seating areas. The joint venture is planning a renovation of the asset, with improvements focused on the upgrading of common areas and amenities. Additionally, new landscaping will be added to the property.
“Joseph Arnold Lofts is a unique, top quality apartment building in a very desirable neighborhood in downtown Seattle,” Joshua Westerberg, a director at Mesa West Capital who originated the financing and also heads up the lender’s San Francisco office, said in prepared remarks. “The sponsor’s planned improvements will enhance the resident experience and ensure the property remains competitive as a top-tier apartment project in the market for years to come. By self-managing the property and leveraging their local expertise in the market, we believe the sponsor will be able to achieve significant operational savings and optimize occupancy.”
Multihousing Pro first reported news of the sale in October. The property sold for $74.5 million — in a sale brokered by CBRE — and the transaction was the Rise/Cigna joint venture’s second deal together. In August 2018, the two purchased the Jack apartments on Capitol Hill for $69 million, as reported by Bisnow.
Rise Properties is a private Canadian REIT focused on multifamily investments in the Greater Seattle Area. With its purchase of The Joe, Rise owns 3,000 units across 19 multifamily assets, managing them via its property management arm, Thrive.
Officials at Rise didn’t immediately respond to a request for comment. Officials at Cigna couldn’t immediately be reached.