Mesa West provides Equus with $72m loan for Texas office campus
Mesa West Capital has provided affiliates of Equus Capital Partners with $72.1 million in short-term debt for the acquisition, repositioning and stabilization of Legacy Place, a 300,000-square-foot office campus in Plano, Texas.
Built in 1998, Legacy Place features two identical six-story office buildings with 27,000-square-foot floor plates, and two parking structures on a 15.3-acre site at 5700–5800 Tennyson Parkway in Plano’s Legacy micromarket.
The property has immediate access to the Dallas North Tollway, a major north-south arterial connecting Interstates 30 and 35E near downtown Dallas to U.S. Highway 380 in Frisco, Texas.
Legacy Place was 87.7 percent leased at closing.
A portion of the loan proceeds from the five-year, non-recourse loan will be used to fund capital improvements including a renovation of building lobbies and common areas, in addition to hospitality-style amenities, elevator modernization, and new HVAC systems.
“Legacy Place I and II are high-quality physical assets that will be significantly improved with the sponsor's capital plan,” said Brian Hirsh, vice president of Mesa West, who originated the loan out of the firm’s Chicago office. “This building modernization program will allow these buildings to directly compete with other class A offerings in Legacy, a submarket that has been experiencing robust tenant demand."
The financing caps an active three-month summer period for the Los Angeles–based bridge lender. Since June, Mesa West Capital has originated more than $820 million in first mortgage debt, with loans ranging from $18 million to $155 million on a variety of property types.
“In an extremely competitive market in which we’ve seen a flattening yield curve and compressed margins, we continue to see deal flow based on our ability to move quickly, leverage key relationships and offer certainty of execution,” added Ronnie Gul, principal at Mesa West.
