SAN DIEGO—Mesa West Capital has provided an affiliate of The Emmes Group with $130 million in first mortgage debt to recapitalize 1 Columbia Place, a 556,000-square-foot class A office complex in downtown San Diego.
A majority of the proceeds from the five-year, non-recourse loan will be used to refinance the CMBS loan Emmes assumed when it acquired the 27-story high rise in 2012. Funds have also been earmarked for additional leasing costs and to continue Emmes' capital improvement program that will complete a $20 million renovation and repositioning of the re-named Columbia Center located at 401 W. A Street.
“Emmes acquired an iconic building and transformed it into one of the most desirable places to work in downtown San Diego,” said Mesa West principal Steve Fried who led the origination team. “The building is approximately 80% leased and with the majority of the vacancy on full upper floors, the asset is well positioned to take advantage of the significant recent renovation and strong location in one of downtown San Diego's key growth corridors."
GlobeSt reported last week that Emmes has selected Cushman & Wakefield as the exclusive leasing team for its 1.45 million-square-foot downtown San Diego office portfolio, which includes 1 Columbia Place.
With the financing of the tower, Mesa West has deployed approximately $600 million in short-term first mortgage debt in the last two months for the acquisition or recapitalization of hotel, office and multifamily assets located in New York, San Diego, Chicago, Palm Beach and Washington, DC.
Mark Williams and Jack Cheng in Eastdil Secured's Orange County and Los Angeles offices arranged the financing.
Mesa West Capital is a privately-held debt fund manager and portfolio lender with more than $3 billion in assets under management. With offices in Los Angeles, Chicago and New York City, Mesa West has been one of the leading providers of commercial real estate debt since its founding in 2004. Mesa West provides non-recourse first mortgage loans for core/core-plus, value-added or transitional properties throughout the United States.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
