Ronnie Gul and Steve Fried

Ronnie Gul and Steve Fried, Mesa West

Ronnie Gul and Steve Fried

Principals at Mesa West Capital

Ronnie Gul and Steve Fried
By November 30, 2020 9:00 AM

Ronnie Gul and Steve Fried have been at Los Angeles-based bridge lender Mesa West Capital since right after its inception in 2004, as one of the first debt funds to be founded prior to the Great Financial Crisis. 

As such, they’ve been through highs and lows in the market, following Mesa West’s approach of a disciplined and defensive posture in its lending practices. 

The pair have grown together with the firm since joining, too. Gul quipped that they currently co-head activity in the “broader West Coast,” stretching from Chicago to the coast. Gul oversees operations in Northern California, the Pacific Northwest and the Midwest, and Fried covers Southern California, the Southwest and Texas. Both also sit on the firm’s investment committee and are part of its broader leadership. 

The measured approach the company takes now has them focused on deploying capital in this turbulent environment, Gul said, via a mix of buckets of funds they have ready to dip into for various opportunities — core plus, value add and special situations. 

Gul said they’re currently seeing the most opportunities on the core plus side for industrial, multifamily and some offices. The value add side is “in a lag,” Gul said, because “a part of it relies on repricing that hasn’t happened yet, which we think builds into next year.” And, for special situations, it covers rescue capital or fund-level deals like something that could “look like a subordinate debt position on an asset where a borrower is trying to raise capital.”

“We’ve also looked at note sales to team up with operators to finance the purchase of a note, and take it through to resolution, and then, at the other end, fund capital and leasing costs to repo the real estate,” Gul said, adding that he expects Mesa West to also be active in hospitality through its special situations bucket. He said its opportunistic fund presents “friendly debt meant to bridge people through the moment in time. We’re attractive to owners because of our reputation, which is a very credit-focused and relationship-focused business.” 

That’s what reigns supreme for Mesa West still today as it manages through COVID-19: its history as an institutional, relationship alternative lender working successfully through disruptions. 

“I think it’s about trying to stay sane and measured through all this and manage expectations,” Gul said about managing through the pandemic and maintaining company culture. “On a personal level, I was early in my career during the GFC, but I was more of an active observer in terms of decision-making. As Steve and I have developed our teams and helped grow the firm, the message we’re giving to our peers is to be patient, because these things take time, especially in this pandemic situation.”—M.B.

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