Mesa West Capital has closed its fourth real estate debt fund at a hard cap of $900 million, beating its original $750 million target. Mesa West Real Estate Income Fund IV’s investors include public and corporate pension funds, sovereigns, insurance companies and foundations and endowments.
LOS ANGELES (December 4, 2016)—Mesa West Capital has successfully closed its largest closed-end real estate debt fund, reaching its hard cap of $900 million in equity commitments for its Mesa West Real Estate Income Fund IV L.P, announced Principal Ryan Krauch.
With an original target of $750 million, Mesa West Capital has exceeded its fund raising goal for its last three closed-end debt vehicles. Through its family of funds and separate accounts, Mesa West originates fixed and floating rate loans for Core, Core Plus, and Value-Add properties across the United States. Mesa West Capital, one of the first managers to focus exclusively on commercial real estate debt when it debuted its $208 million fund in 2005, has since deployed more than $11 billion of loans.
“We are humbled that both new and existing investors put their trust in our team and investment strategy,” said Krauch.
Investors in Mesa West Real Estate Income Fund IV, L.P. include public and corporate pension funds, sovereigns, insurance companies, and foundations and endowments. Approximately 80 percent of the investors in Fund IV have invested in one or more of Mesa West’s previous funds.
Institutional capital is increasingly looking at commercial real estate with a more cautious eye given where the market is in the cycle. With commercial property values at record highs, U.S. Federal Reserve edging towards higher interest rates, and global markets uncertain, institutional investors continue to seek the low volatility and high current income provided by our debt funds, explained Krauch.
“Our investors understand that they can often achieve better going-in yield and average cash-on-cash returns by lending on high quality assets than they can by buying them, while at the same time being in the most senior position of the capital stack, which is especially important in today’s low cap rate environment,” said Krauch.
About Mesa West Capital, LLC
Mesa West Capital (www.mesawestcapital.com) is a privately held debt fund manager and portfolio lender with more than $5.5 billion in equity under management. With offices in Los Angeles, Chicago and New York City, Mesa West has been one of the most active private 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 and 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 250 transactions totaling in excess of $11.5 billion.