Mesa West Capital has provided a $283.3 million loan to a joint venture between Brightstone Capital Partners and Artisan Realty Advisors, the firm announced Monday.
The loan supported the acquisition and renovation of the 478,713 square foot Lantana Media Campus office complex in Santa Monica, California.
The firm originated the seven-year, floating-rate financing from its open-ended Mesa West Core Lending Fund, which provides lower leverage loans of up to $300 million on stabilised assets. Mesa West’s target return for its first mortgage lending is 3 percent to 5 percent, with loan-to-value ratios up to 75 percent, according to its website.
The joint venture will use the loan proceeds to purchase the Class A Lantana office buildings located on Olympic and Exposition boulevards in Santa Monica, which is leased to several entertainment and film companies including the National Academy of Recording Arts & Sciences and Dick Clark Productions.
The loan will also pay for an extensive renovation programme including plans to upgrade the lobbies, elevators, restrooms, private courtyards and the addition of an on-site amenity package.
“The principals of Brightstone and Artisan have previously executed value-add business plans on high-quality assets throughout the country,” Steve Fried, Mesa West’s co-head of West Coast originations, said in a statement. “We are confident in their ability to do the same with the Lantana Media Campus, a landmark asset in the supply-constrained Santa Monica market.”
Mesa West is based in Los Angeles and provides financing for real estate acquisitions, re-financings and re-capitalisations in the US. The firm manages more than $4.5 billion in assets.