Mesa West Capital has provided the Vanbarton Group, together with one of its U.S. pension fund partners, with $16 million in first mortgage debt to finance a fully occupied 12,281-square-foot retail property in San Francisco, CA. HFF worked on behalf of Vanbarton Group
to place the floating-rate loan with Mesa West Capital.
Located at 39 Stockton Street, the two-story building is 100% leased to The Walt Disney Company. The property benefits from its location one block south of Union Square within the City’s primary shopping district with 146 retail stores in a four-block radius. The property is neighbored by some of the largest national and international brands such as Apple, Barney’s New York, Macy’s, Crate & Barrel and Ghirardelli.
A new Central Subway station, which will connect BART and Caltrain, is currently under construction nearby at Stockton and Market Streets. When completed in 2019, the Central Subway station is expected to increase pedestrian traffic on Stockton Street.
“The Union Square submarket is already one of the most desirable retail districts in the United States, and occupancy and rental rates are at historic levels,” said Mesa West Principal Ronnie Gul who led the West Coast origination team. “The new subway will bring thousands of locals and tourists each day right to the front step of the asset, which will substantially increase the desirability of the property.”
Mesa West’s five-year floating-rate loan was originated out of the firm’s Mesa West Real Estate Income Fund IV, LLC.
The financing was arranged by John Churchward in HFF’s San Francisco office.
Mesa West Capital is a privately held debt fund manager and portfolio lender with more than $4.5 billion in assets under management. With offices in Los Angeles, Chicago and New York City, Mesa West has been one of the leading providers of commercial real estate debt since its founding in 2004. Mesa West provides non-recourse first mortgage loans for core/core-plus, value-added or transitional properties throughout the United States. Mesa West’s lending portfolio includes all major property types with loan sizes ranging from $20 million up to $300 million. Since inception, the firm has sourced and closed more than 245 transactions totaling in excess of $10 billion.
Vanbarton Group is a privately owned, vertically integrated real estate investment and advisory firm founded in 1992 with corporate offices in New York City and San Francisco.