Strong Sponsors, Good Locations Behind Mesa West's Q4 Chicago Spending Spree
When Mesa West started 2016 by providing Hearn with $210M in refinancing for the John Hancock Center, who knew it would be the start of a yearlong spending spree? Mesa West has sponsored four projects in the last six weeks, totaling $265.3M.
It started in early October, when Mesa West originated a $37.5M first mortgage for Tucker Development and Acadia Realty Trust for their 900 West adaptive reuse project in Fulton Market, and $30.2M in short-term financing for Golub's acquisition of Lake Shore Tower in Edgewater. On Oct. 24, Mesa West helped Sterling Bay recapitalize 121 West Wacker (shown) with $82.6M in refinancing. Two days later, JDL Development and iStar Financial cashed out on 1000 South Clark with a $145M refinancing package—Mesa West provided most of the money with a $115M senior loan.
Why is Mesa West making it rain so late in the year? VP Matt Snyder says each of these deals is unique, but they and the Hancock Center loan share a common thread: They're well-located assets backed by very experienced sponsors. In the case of 1000 South Clark (shown), two things stood out for Mesa West. First, the asset's amenities package is near the top of what's being offered in Chicago's multifamily market. Matt adds that 1000 South Clark's lease-up velocity in only nine months was an eye-opener—JDL has leased 80% of the building's 469 apartments to date.
Matt has similar things to say about 900 West. He likes that Fulton Market's development is moving west, and 900 West is now on the "50-yard line" of the neighborhood, with 1K Fulton (which Mesa West helped Sterling Bay refinance for $220M last year) at one end and McDonald's future HQ at the other.
Mesa West has been busy making waves in the Chicago real estate market since opening its Chicago offices 18 months ago. The firm has originated over $800M in short-term debt in that time.