Mesa West Provides $61.5 Million Refinancing for LBA Realty's Sunnyvale Office Building

Mesa West Capital provided $61.5 million to refinance a 125,000-square-foot Class A office property in Sunnyvale, California, for LBA Realty, Commercial Observer first reported. The JLL Capital Markets team of Kevin MacKenzie, Peter Thompson and Spencer Bergthold arranged the transaction.

Mesa West's Loan on 285 Sobrante Way

The debt covers the building at 285 Sobrante Way, which opened in 2021 and generates solar power on site. LBA Realty bought the asset for $42.3 million in June 2025, after it had spent nearly a year in receivership following a default on construction debt by prior owners SteelWave and Principal Real Estate Investors, The Real Deal reported earlier this year.

Hoony Shin, a vice president at Mesa West, said Sunnyvale has seen no new deliveries of Class A office space in recent years while the technology sector has expanded rapidly on artificial intelligence. Class A office availability in Silicon Valley dropped to 11 percent in the second quarter of 2026, the third consecutive quarterly decline, according to JLL data.

"Silicon Valley remains one of the nation's leading technology and innovation markets, supported by a highly educated workforce and significant venture capital investment," said Josh Westerberg, head of capital markets at Mesa West.

Mesa West's Lending Record

Mesa West was founded in 2004 and has closed more than 450 transactions since inception, with total loan commitments of $29 billion, according to akta.pro company records. The Los Angeles-based lender is affiliated with Morgan Stanley Investment Management and originates non-recourse first mortgage and mezzanine loans of $20 million to $400 million for institutional sponsors across the United States. Raphael Fishbach and Ronnie Gul serve as co-chief executive officers.

Mesa West's Recent Apartment Loans

In September 2026, Mesa West provided a $27 million five-year nonrecourse first-mortgage loan to Timberlane Partners for its off-market purchase of the 91-unit Vista Ridge apartment complex in Issaquah, Washington, Commercial Observer reported. Timberlane paid $37 million for the property, and the loan closed in 23 days.

In August 2026, Timberlane secured a $52 million short-term first-mortgage refinancing loan from Mesa West for Sumner Mill Apartments, a 162-unit multifamily community in Sumner, Washington, Commercial Observer reported. In July 2026, Mesa West originated an $81 million short-term first-mortgage loan to refinance Atlas Parkview, a 330-unit multifamily community in Centennial, Colorado, PRLog reported.