Mesa West Capital has held a first close on its third US real estate debt fund.
Documents filed with the US Securities and Exchange Commission reveal that the Los Angeles-based firm has closed on $380 million for its Mesa West Real Estate Income Fund III. Sources familiar with the matter told PERE that Mesa West is seeking $650 million for the closed-ended commingled vehicle that was launched earlier this year. Representatives from Mesa West declined to comment.
Like the previous vehicles in the series, Fund III will provide financing for value-added real estate investments across the US, targeting office, industrial, retail, apartment and hotel assets. Although Mesa West will seek investment opportunities throughout the US, it will focus in particular on the major markets along the coasts.
Investors in the fund include public and corporate pension funds. For example, it was announced in August that the Texas Permanent School Fund approved a commitment of $75 million to Fund III. The minimum contribution to the vehicle is $10 million. A final close is expected in the first quarter of 2013.
Its prior vehicle, Fund II, closed on $614.5 million of equity – $200 million over its original target – from 25 investors in June 2010. Investments made on behalf of Fund II have included a $25.6 million first mortgage provided to the Magellan Group for the recapitalisation of a 500,000 square foot industrial complex in Commerce, California, and a $14.5 million first mortgage refinancing for an Evanston, Illinois hotel owned by Greenfield Partners.
Founded in 2004 by Jeff Friedman and Mark Zytko, Mesa West Capital is a privately held portfolio lender with a capital base of more than $2 billion.