Mesa West Capital has originated its first loan in the state of Minnesota, funding $20 million in first mortgage debt to recapitalize an historic 150,000-square-foot office building in Minneapolis.
The five-year, interest-only loan is secured by The Colwell Building, a recently renovated eight-story red-stone and brick building located at 123 N. 3rd St. in Minneapolis’ Warehouse District. A joint venture led by San Francisco-based real estate investment firm Spear Street Capital recently completed the first phase of a multi-million-dollar renovation of the property.
Improvements included new terrazzo floors in the lobby, upgrades to the elevator systems and cabs, new HVAC and windows, earning the building an Energy Star label from the EPA for improved building energy performance and sustainability.
A portion of the loan proceeds from the Mesa West loan will be used to build a fitness center and bike-storage room, as well as to fund leasing and tenant improvement costs associated with stabilizing the building.
