Real estate lender Mesa West Capital has provided $88.3M in first mortgage and mezzanine debt to refinance The SoBro in Downtown Nashville. The deal marks the SoCal-based Mesa West's foray into Tennessee.
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“The SoBro is a high-quality asset that represents Nashville’s evolution as a desirable market for institutional capital,” Mesa West Capital vice president Matt Snyder, who originated the financing out of Mesa West’s Chicago office, said.
One factor that attracted Mesa West to the deal, and the market, is the strength of the region's multifamily fundamentals. "Nashville's experiencing significant population growth, especially among Millennials who are coming for its increasing number of job opportunities," Snyder said. They have also heard about the region’s active lifestyle and cultural base.
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Synder added the financing will allow Chicago-based developer Megellan Development Group to take advantage of Nashville's strong job market as it leases up and stabilizes the property. The 313-unit SoBro at 205 Demonbreun St., completed last year, is about 25% occupied.
"The SoBro is located and designed specifically to meet the demand for housing in the urban core by this demographic who prefer to rent versus own," Snyder said.
The financing included $20.3M in mezz financing that was sold to an institutional investor at closing. Mesa West Capital is a privately held portfolio lender with a capital base of more than $4B and offices in LA, Chicago and NY. Since its inception, the company has closed more than 245 transactions totaling more than $10B.
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