Mesa West Capital Closes $900M Fund

By Keith Loria, Contributing Editor

Los Angeles—Mesa West Capital has closed its largest closed-end real estate debt fund, reaching a hard cap of $900 million in equity commitments for its Mesa West Real Estate Income Fund IV LP.

Ryan Krauch, Mesa West Capital

This is its fourth fund overall and surpassed its original $750 million target.

“For this particular fund, we will continue to provide short-term non-recourse first mortgage debt ranging from $20 million to $300 million for the acquisition, refinancing and recapitalization of institutional quality real estate assets in transition,” Ryan Krauch, Mesa West Capital’s principal, told Commercial Property Executive. “Fund IV allows us to continue the successful lending product that we have been providing to the market for the last 13 years—and given the size we will be able to accommodate even more clients and better serve the market.”

Mesa West Real Estate Income Fund IV’s investors include public and corporate pension funds, sovereigns, insurance companies and foundations and endowments. Approximately 80 percent of the investors have invested in one or more of Mesa West’s previous funds.

Mesa West originates fixed and floating rate loans for core, core plus and value-add properties across the United States. It was one of the first managers to focus exclusively on commercial real estate debt when it debuted its $208 million fund in 2005, and has since deployed more than $11 billion of loans.

According to Krauch, from its offices in Los Angeles, Chicago and New York, the company lends on all major property types in primary markets throughout the United States.

“The company philosophy has always been to provide responsive service to our borrowing clients by keeping the loans on our balance sheet (rather than securitizing), provide certainty and speed of execution so that our borrowers can transact confidently, and offer a unique and flexible loan product that can adapt to the various needs of different properties and business plans,” he said. “The high level of demand that we are seeing for our loans now and for the last decade reinforces that borrowers value these services we are excited that Fund IV allows us to continue providing this product to the market.”