Mesa West Capital Lends $65M on LA Multifamily Acquisition
By Mack Burke March 17, 2020 7:11 pm
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Mesa West Capital has provided $65 million for the acquisition of a rental community in Los Angeles, according to information released by the lender.
The five-year, floating-rate first mortgage will help facilitate Newport Beach, Calif.-based developer and investor Sares Regis Group’s purchase of The Preston, a 169-unit multifamily complex at 630 South Masselin Avenue in The Miracle Mile neighborhood of L.A.
Mesa West Capital’s Joshua Westerberg, out of the firm’s San Francisco office, originated the loan. A San Francisco-based CBRE (CBRE) team led by Jesse Weber and Scott Williams sourced and arranged the financing.
The four-story property — situated between Wilshire Boulevard and 6th Street — comprises a mix of studio, one- and two-bedroom units and also sports a 336-car parking garage with charging stations for electric vehicles. The property also has a pool and clubhouse, with a fitness center, and a pet park, among other amenities.
Its location puts it within a block of a collection of Los Angeles museums, such as the Los Angeles County Museum of Art, the La Brea Tar Pits and Museum, the Craft Contemporary, which features hand-made crafts from around the world, and the Petersen Automotive Museum. The new Academy Museum of Motion Pictures currently under construction at 6067 Wilshire Boulevard is also scheduled to open in December.
The rental building will also eventually benefit from the addition of two nearby subway stations that will service riders along the metro’s purple line, which will be complete in 2023. The second and third phases of the purple line’s extension are scheduled to open in 2025 and 2027, respectively, extending its reach to the Beverly Hills, Century City and Westwood areas.
The borrower is planning to undergo a capital expenditure campaign to upgrade the asset’s exterior, common areas and amenities in a move to modernize the asset. Sares Regis is planning to also upgrade existing units as they become vacant.
Current monthly rents at the property range from around $2,200 for studios to roughly $3,600 for two-bedroom apartments, according to information from Apartments.com.
Officials at Sares Regis could not immediately be reached.
