Mesa West Capital has provided DreamField Capital (DreamField) with $23.4 million in first mortgage debt for its acquisition of a 200-unit multifamily community in Austin, TX.
 
The five-year loan is secured by Nichols Park, a 1980s vintage community located at 5001 Convict Hill Road in the West Oak Hill neighborhood of Southwest Austin.   The property, which features a mix of one- and two-bedroom apartment homes, was 96% occupied at closing.   Amenities include a community lounge and coffee bar, a barbecue and picnic pavilion, a swimming pool with poolside cabanas, a basketball court, and a dog park.
 
With only three of the 200 apartment homes recently renovated, DreamField plans to implement a full-scale renovation of the remaining classic-condition units, according to Brian Hirsh, Head of Mesa West Capital’s Central Region who led the financing along with Vice President Hoony Shin and Associate JJ McMahon.

“The property’s largely unrenovated condition provides a strong opportunity to execute a comprehensive value-add strategy,” said Hirsh. “This will allow DreamField to reposition the asset as a high-quality, cost-effective alternative to newer, more expensive properties in the desirable Southwest Austin submarket.”

A portion of the loan proceeds will be allocated toward upgrading unit interiors, including the installation of vinyl plank flooring, resurfaced cabinetry, solid surface countertops, and modernized fixtures and hardware.

Apartment demand in Southwest Austin, a submarket known for high barriers-to-entry, is strongly supported by the area’s concentration of employers, including the corporate offices of NXP Semiconductors, Abbot Labs and Dimension Fund Advisors.   Additional demand drivers include highly rated public schools, an abundance of dining and shopping, while still being a short commute to downtown Austin.

DreamField, a Los Angeles-based real estate investment firm, has engaged Austin-based RPM Living to manage the property.