SUNNYVALE, CA-Mesa West Capital of Los Angeles has acquired the $130 million note on three 13% occupied class A office towers totaling 951,000 square feet, citing the potential to fill the space when the market improves, according to Mesa West principal Ronnie Gul. The three towers, developed by San Francisco-based Jay Paul Co. and completed in 2008, are part of a six-story, multi-story project totaling 1.6 million square feet called Moffett Towers at the juncture of Highways 101 and 237.

The collateral on the note includes phase one of the office campus, which is composed of the three largest and most prominent buildings. Although the collective occupancy of the three buildings is 13% following a recently signed 125,000 square-foot lease with Rambus, Gul says that Moffett Towers “is a high-profile, first-to-lease asset that's uniquely positioned to capture the expected increase in demand for class A office space." Gul adds, “This note purchase fits perfectly within our lending platform of financing high-quality, well located transitional assets backed by strong local sponsors."

Gul continues: "Much of the available inventory in Silicon Valley is older and outdated, and while largely vacant we believe Moffett Towers is well positioned to take advantage of the flight to quality as fast-growing technology companies seek to upgrade their image with higher quality space." The note sale was arranged by Noble Carpenter and Michel Seifer of Jones Lang LaSalle.