Mesa West Capital Provides $18.3M Loan To Refinance Kearny Mesa Office Complex
Los Angeles-based portfolio lender Mesa West Capital has provided Brookwood Financial Partners an $18.3M mortgage to refinance the 124,700 SF Four Points Business Park (pictured) at the corner of Ruffin Road and Chesapeake Drive in the Kearny Mesa submarket. The office complex consists of three low-rise buildings on a five-acre site. Based in Temecula, CA, Brookwood is a private equity investment firm specializing in acquisition and management of value-add commercial real estate assets and related business operations. Financing was arranged by CBRE Capital Markets San Diego office SVPs Mark McGovern and Scott Peterson.
Brookwood acquired the Kearny Mesa business park, built in 1987, in June 2013 and invested $3.5M in capital improvements and leasing costs to stabilize the property. This five-year, floating rate non-recourse loan from Mesa West allows Brookwood to aggressively lease the last vacant space at the property, says Mesa West Capital principal Steve Fried. He originated the loan along with the firm’s Seth Hall.
“Brookwood has done an excellent job in renovating the property and increasing occupancy during their period of ownership,” he notes. “Our loan proceeds will help them continue leasing momentum in a centrally located submarket that has historically performed very well.”
Driven by more than 660k SF of net absorption in Q1 2016, San Diego's overall office vacancy fell to a post-recession low of 12.5%, according to a CBRE market report. Nearly 20% of that absorption occurred in Kearny Mesa, with overall vacancy in Kearny Mesa dipping to 11.1%. Mesa West also originated a $130M first mortgage in 2015 for Downtown San Diego's 1 Columbia Place, a 556k SF, Class-A office complex.