SAN DIEGO—Mesa West Capital has originated at $165-million loan in short-term first-mortgage debt to refinance two new luxury apartment complexes developed and owned by Sunroad Enterprises in the 40-acre master-planned community Sunroad Centrum. Both complexes are located in the Kearny Mesa submarket.
Mesa West VP Jason Bressler tells GlobeSt.com the Kearny Mesa multifamily market benefits from a variety of significant demand drivers including an increasing population and one of the highest household incomes in San Diego. “In addition to its excellent schools and rich retail amenity base, Kearny Mesa is centrally located, with easy access to San Diego's other major employment hubs including Mission Valley, Downtown San Diego and Sorrento Valley.”
For this deal, the five-year, non-recourse loan was structured in two pieces, with Mesa West holding the $145-million A-note and New York-based real estate investment advisor Clarion Partners holding the $20-million B-note. Tim Wright and Aldon Cole in the San Diego office of HFF arranged the financing.
The two complexes in the deal are the 253-unit Ariva and the 302-unit Vive on the Park, the two most recent apartment developments in Sunroad Centrum. At build out, the master-planned community will include 1,622 multifamily units and 856,000 square feet of commercial-office space. Sunroad Centrum is part of the San Diego Spectrum Center, the redevelopment of the former 232-acre General Dynamics aerospace facility.
Ariva, which consists of two four-story podium-style buildings, was completed in 2014 and leased up by the sponsor in less than 16 months. The seven-story Vive on the Park was recently completed and is 52% leased after being on the market only five months. Both projects include top-end construction, upscale amenity packages and contemporary finishes. Bressler tells us that the strength of the market is reflected in the leasing velocity at Ariva and Vive.
Mesa West Capital principal Steve Fried, who led the origination team along with Bressler, said in a prepared statement that Kearny Mesa is one of the most rapidly developing pockets in San Diego County and that the two residential projects benefit from the many demand drivers for the area. Located in the center of San Diego, Kearny Mesa enjoys one of the highest household incomes in San Diego and has a strong employment base, which includes the corporate headquarters of San Diego Gas and Electric, Northrup Grumman, Kaiser Permanente and Solar Turbines.
As GlobeSt.com recently reported, Mesa West has originated its first loan in the state of Minnesota, funding $20 million in first-mortgage debt to recapitalize an historic 150,000-square-foot office building in Minneapolis.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
