CHICAGO—As reported yesterday in GlobeSt.com, the Los Angeles-based Mesa West Capital just opened up a Chicago office, its third nationwide, due to its growing involvement in the region's real estate market. And the firm has also just funded two more loans totaling $60.6 million for the acquisition of several city properties, including a 175-unit apartment community and a four-building office portfolio.

In the larger of the two financings, Mesa West provided CLK Properties with $44.1 million in first mortgage debt for the acquisition and renovation of Elaine Place, nine pre-war walk-ups mostly on the 3400 block of N. Elaine Pl. just blocks from Wrigley Field. Washington, DC-based ASB Real Estate Investments sold the 175-unit portfolio to Woodbury, NY-based CLK for $50.5 million. The purchase was a good example of the desirability of multifamily properties in Chicago. According to Cook County property records, ASB and its partners purchased the collection in late 2012 for just $28.5 million.

CLK has been quite active in the Chicago market, having acquired 12 multifamily properties over the past year. Company officials say they will use a portion of Mesa West's loan proceeds to renovate each of the studio, one- two- and three bedroom apartments in order to capture rent premiums associated with similar properties in the area.

“These vintage buildings are located in one of Chicago's most desirable neighborhoods and is within walking distance to public transit, Lake Michigan and Wrigleyville with its numerous restaurants and lifestyle amenities,” says Mesa West principal Ronnie Gul. “Lakeview is one of the strongest rental markets in Chicago and continues to experience excellent occupancy and rent growth.”

Mesa West also provided CLK and its joint venture partner RCG Longview with a $16.5 million loan to acquire and stabilize four low-rise, mixed-use buildings in the West Loop's Fulton Market neighborhood. The former industrial buildings totaling 86,755 square feet were collectively 64% occupied at closing.

“The rent roll is comprised of very small, short-term leases at below market rents and our financing will allow the new ownership to leverage rapidly improving market fundaments and lease the space to creative and tech users as well as retailers which are being drawn to the area,” says Gul.

Sal Torre at Estreich & Co. arranged both financings. Matthew Snyder heads up the new Mesa West office. In the past six months, the firm has completed more than $348 million of loan originations in the Chicagoland area.