Mesa West Value-Add Fund Hits $700M

LOS ANGELES-Mesa West Capital LLC, a Los Angeles-based real estate investment manager, is set to close its third value-added debt fund this month with commitments between $730 and $750 million. With $700 million in commitments already sourced, the firm has already surpassed its original target of $650 million.

The excess funding is indicative of a successful net return track record the firm has supplied investors in its earlier two funds. In June 2010, Fund II, for example, closed at $614.5 million in commitments and produced and internal net return of 15%. The target net return for Fund III is 12% with a 1.35% management fee on committed capital and invested equity. These management fees are 15 basis points lower than Fund II.