Fishbach of Mesa West finances $95.5 million for 355,000 s/f office building

Mesa West Capital has provided Brookfield Real Estate Opportunity Fund I, with a $95.5 million first mortgage loan on 64 New York Ave. NE, a 355,000 s/f office building. Built in 1924 as a warehouse, the building was converted into a class A office building in 2000. It is located in the NoMa submarket, which is considered one of the fastest growing areas in the area. Since 2004, the area has benefited from more than $3 billion of private investment. Since acquiring the building in 2005 Brookfield has made significant capital improvements to the building's tenant spaces, common areas and building systems. The building has received an Energy Star label every year since 2009, and in 2011, it was awarded LEED Gold Certification by the U.S. Green Building Council. The building is currently 45 percent occupied by the District of Columbia who recently signed a new long-term lease and Brookfield is actively marketing the remaining space. The loan proceeds were used to refinance the existing debt as well as provide for capital costs associated with the recent improvements and District of Columbia lease, according to Mesa West principal Raphael Fishbach in the firm's New York City office, who originated the financing. In addition, the loan includes a holdback to fund the costs associated with leasing up the remaining vacancy. "This investment provides us with an opportunity to make another loan on an institutional quality building with a long-term credit lease to a sponsor with substantial cash equity invested in the asset," said Fishbach.