CapRidge Buys Lakewood on the Park

Equity Commonwealth, a Chicago-based REIT, has sold Lakewood on the Park, a set of office buildings located along the North 360 Loop on Austin, to CapRidge Partners. Austin-based CapRidge Partners acquired the 180,588-square foot suburban office campus with $32.1 million in financing provided by Los Angeles-based Mesa West Capital, a private debt fund manager and portfolio lender with offices in Los Angeles, New York and Chicago. HFF arranged the financing and represented the seller in the transaction; the total purchase price that CapRidge Partners paid was not disclosed. According to the Travis Central Appraisal District, the property most recently valued at almost $40 million.

"CapRidge Partners is a local owner with a proven track record executing similar business plans throughout the country," said Mesa West Vice President Jason Bressler. "When it completes the renovation, CapRidge will be able to leverage the strong market fundamentals and leasing in the Northwest submarket by re-positioning Lakewood on the Park as a well located value alternative to the higher priced space in competitive buildings."

Located at 700 Capital of Texas Highway, the property features two three-story Class A office buildings on a nearly ten-acre site overlooking Bull Creek. Originally built in 1998, Lakewood on the Park, Buildings B and C, was 77% leased at the time of sale, with major tenants including Centaur Technology Inc., Bulldog Solutions, and USA Southwest Inc. The property was developed by HPI, and received the 2012-13 TOBY Award from the Building Owners and Managers Association for the best low-rise suburban office park in the city. Mesa West's loan includes funding for an extensive capital improvement program to support CapRidge’s renovation plans, which call for the complete redesign of all common areas including lobbies, corridors and restrooms; new fitness center, tenant lounge, coffee bar and shared conference center; and upgrades to the MEP systems. Exterior improvements will include new landscaping, signage and lighting. The property benefits from nearby executive housing and popular shopping and entertainment destinations The Arboretum and Barton Creek Square.

For more news and information visit Blumberg Partners.

Benchmark Picks Up East Village MU Building for $57M

Benchmark Real Estate Group, a full service real estate company focused on properties in New York City, purchased 55 Third Avenue between 10th and 11th streets in the East Village for $57 million. 200 Eleventh Street Associates, the same firm that developed the building in 1986, sold the mixed use property; terms of the deal were not disclosed. Los Angeles-based Mesa West Capital, a private portfolio lender, provided the financing, according to a Wall Street Journal report.

"We are excited to make 55 Third Avenue the first acquisition of Benchmark Western Real Estate Fund I, an $80 million investment vehicle raised to target multi-family value-add opportunities in Manhattan," said Benchmark Real Estate Group's co-founder and managing member Jordan Vogel.

"Our financing allowed Benchmark to capitalize on an opportunity to buy a well located building with tremendous potential in a very tight East Village submarket," adds Mesa West's Russell Frahm, who led the New York-based origination team. "Little has been done to the building since it was built in 1986, and the planned improvements will allow Benchmark to achieve rents in line with the high end residential market of the East Village and Union Square. Benchmark has a demonstrated track record of rebranding and repositioning multifamily properties in New York and we believe they will do the same with this asset."

The 12-story building features 55 one-bedroom rental units, and 10,500 square feet of retail space, which is currently 100% occupied by three tenants, including the lower east side location of the Smith, a popular American Brasserie with three locations throughout Manhattan. Russell Frahm, head of Mesa West's New York origination team, said that Benchmark plans to invest money from its $45 million first mortgage to renovate and upgrade the apartment units and increase the retail space by 15% to 20%.

For more news and information visit Blumberg Capital Partners.

Mesa West Capital Secures $55M Loan for Newport Beach Office

Mesa West Capital, a Los Angeles-based lender, announced this week that it had originated the first loan from its Mesa West Real Estate Income Fund III, providing a $55 million first mortgage debt to an affiliate of Emmes Asset Management. Jonathan Firestone and J.P. Leveque at Eastdil Secured arranged the financing. Emmes will use the loan to recapitalize 4000 MacArthur Boulevard in Newport Beach, CA, has recently completed a multimillion dollar renovation on the Class A office complex.

"Emmes was able to acquire an institutional quality asset in a top Southern California location and is repositioning it to take advantage of a lack of large contiguous blocks of quality space and an improving rental market in Orange County," said Jason Bressler of Mesa West Capital. "They have a tremendous track record in realizing the investment potential in transitional assets, especially here in Orange County."

Originally built in 1979, the 376,000 square foot office complex is under lease management with Jones Lang LaSalle. The recent renovations on the two 10-story buildings, also known as Koll Center, include a redesign of the building lobby and entry, a new full-service cafe and outdoor patio, major improvements to the building systems and upgrades to common areas.

For more news and information visit Blumberg Capital Partners.