Mesa West Provides $62M Refi for Silicon Valley Office Property
Sponsor LBA Realty purchased the 125,000-square-foot, Class A office asset last year for $42.3 million
By Brian Pascus October 27, 2026 10:27 am
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LBA Realty has secured $61.5 million to refinance a 125,000-square-foot Class A office property in the Silicon Valley town of Sunnyvale, Calif., Commercial Observer can first report.
Mesa West provided the debt, while the JLL Capital Markets team of Kevin MacKenzie, Peter Thompson and Spencer Bergthold arranged the transaction.
Hoony Shin, vice president at Mesa West, noted that Sunnyvale has not experienced any new deliveries of Class A office space in recent years, even as the technology sector has grown exponentially due to artificial intelligence.
To wit: the availability of Class A office space declined to only 11 percent in the second quarter of 2026, the third consecutive quarter of declines, according to JLL data.
“Silicon Valley remains one of the nation’s leading technology and innovation markets, supported by a highly educated workforce and significant venture capital investment,” said Josh Westerberg, head of capital markets at Mesa West.
Located at 285 Sobrante Way in Sunnyvale — a city of roughly 150,000 residents near Palo Alto, Cupertino and Santa Clara — the office asset opened in 2021 and features on-site solar power generation.
The Real Deal reported earlier this year the building was acquired by LBA Realty for $42.3 million in June 2025, after having fallen into receivership for nearly a year after previous owners, SteelWave and Principal Real Estate Investors, defaulted on their construction debt.
Brian Pascus can be reached at bpascus@commercialobserver.com.
