Mesa West Capital has provided the joint venture of Rise Properties Trust and Cigna Investment Management with $52 million in first mortgage debt for the acquisition and repositioning of a 131-unit multifamily building in Seattle, WA.
The five-year, non-recourse financing is secured by Joseph Arnold Lofts, a 12-story apartment building located at 62 Cedar Street in Seattle’s Belltown neighborhood, one block from the redeveloping Seattle waterfront. The property is within walking distance to Pike Place Market, the Seattle Center and the popular 2nd Avenue retail district.
Built in 2013 “The Joe,” features a mix of studio, one- and two-bedroom apartment homes with condo quality finishes. The development’s concrete and steel construction provides for floor-to-ceiling windows and ceiling heights up to 13 feet. The amenity-rich property includes a studio apartment guest suite, fitness center, business center, tenant lounge and rooftop deck with barbecues, fire pit and outdoor seating areas.
While in excellent condition, the sponsor will undertake a moderate renovation program as units roll. The bulk of the improvements will be focused on the common areas which will include upgrading the existing fitness center, rooftop deck enhancements, upgrades to the resident lounge/game room, improvements to the lobby and common areas, and adding new landscaping to improve the overall resident experience.
“Joseph Arnold Lofts is a unique, top quality apartment building in a very desirable neighborhood in downtown Seattle. The sponsor’s planned improvements will enhance the resident experience and ensure the Property remains competitive as a top-tier apartment project in the market for years to come,” said Mesa West Capital Director Joshua Westerberg who originated the financing and runs the firm’s San Francisco office. “By self-managing the property and leveraging their local expertise in the market, we believe the sponsor will be able to achieve significant operational savings and optimize occupancy,” said Westerberg.
Rise, a private, open-ended Canadian REIT, focuses on multifamily investment in the Pacific Northwest. Through Thrive, its property management arm, Rise manages nearly 3,000 multifamily units in the Seattle area.