Mesa Capital Partners has completed another round of fund raising to continue its multifamily acquisition and development strategy. Mesa has secured an additional $80 million in equity capital from BMCC Investment Group to pursue approximately $250 million in additional acquisitions and new developments over the next 15 months. Mesa will focus on acquiring existing “ageing A” apartment communities with attractive current yields and continue to invest in joint venture green field developments with experienced multifamily development sponsors.
Since inception in 2010, Mesa has acquired, developed, or sold over 15,000 apartment units totaling over $1.2 billion in asset value. Mesa remains bullish on the multi-family market after a very successful 2015, having completed 18 transactions totaling $500 million in transaction volume. The company has expanded its Southeastern footprint to include assets in Greenville, SC, Charleston, SC Birmingham, AL, Jacksonville, FL, Little Rock, AR, Charlotte, NC, and Asheville, NC. Mesa’s current joint venture development partnerships include both Birmingham based LIV Development and Atlanta based Hathaway Development Partners.
In addition to 6 new investments in 2015, Mesa sold 11 assets totaling $300 million including Seagrass, a 396 unit new multifamily development in Jacksonville, FL and Gallery, a 378 unit 1984 vintage asset in Marietta, GA. Seagrass was acquired in 2013 during the construction process and prior to lease up. Mesa found an opportunity to acquire a well located asset below replacement cost and leverage Mesa’s experience to complete the development and lease up of the property. Mesa sold the asset within 14 months of acquisition with very favorable results. Gallery was sold within 18 months following acquisition and an extensive renovation program that led to significant returns to the partnership.
Mesa Partners, Tom Bell, Jeff Tucker and Zach Schaumburg investment thesis is that economic and demographic trends continue to favor the multi-family industry with an increasing number of Baby Boomers and Millennials choosing to rent rather than buy. The effect of these market conditions creates extremely favorable multifamily fundamentals that continue to support investment and development in select markets throughout the Southeast. Mesa believes these fundamentals will continue to provide investment opportunities throughout 2016-2017 to support its record of exceptional returns to its investors.
About Mesa Capital Partners
Mesa Capital Partners is a multi-family investment firm based in Atlanta, Georgia founded by Tom Bell as Chairman and Jeff Tucker as Managing Partner that makes multi-family real estate investments on behalf of the firm’s principals and private investors. Mesa sources, evaluates, and underwrites multifamily development and acquisition opportunities throughout the Southeast. Mesa offers a hands-on approach; uniquely able to manage and execute value-add services, improved management, asset re-habilitation, re-development, and/or repositioning programs.