Mesa West Capital’s New York office has originated a $56.8 million first mortgage loan to 515 N. Flagler Drive Owner LLC for the acquisition, renovation and stabilization of Northbridge Centre, a Class A office building in West Palm Beach, FL.
The sponsor acquired the 287,000 s/f Northbridge Centre from Gaedeke Group, which has owned the building for the past 20 years.
North bridge Centre is located at the base of the Flagler Memorial Bridge near the Palm Beach Yacht Club and vibrant retail corridor on Clematis Street. Built in 1987 and renovated in 2002, the building offers unobstructed views of the Intracoastal Waterway, Palm Beach and the Atlantic Ocean.
The property was 71 percent leased at closing.
The floating rate loan allows the operator to leverage the acquisition and includes a future funding component to be used towards leasing costs associated with stabilizing the property, according to vice president Russell Frahm, who covers the southeast for Mesa West.
“Downtown West Palm Beach is one of the most institutional and accessible office markets in the Southeast,” said Frahm.
“Increased demand and a lack of new supply have resulted in a steady increase in rents and occupancy which we expect to continue over the next several years. The sponsor acquired a quality asset at a cost basis far below that of competing product, and our financing will allow ownership to implement its business plan to capitalize on the improving market.”