Mesa West's $44M Refi Deal with Alliance and PCCP for Los Feliz Apartments Raises Eyebrows

Alliance Residential and PCCP, the owners of the Broadstone Los Feliz apartments, recently secured a $43.5 million refinancing loan from Mesa West Capital. According to a report by The Real Deal, the Los Angeles-based firm was drawn to the "strong cultural scene, limited supply, and unique character" of the Los Feliz neighborhood.

However, industry insiders are questioning the true motivations behind this deal. Josh Westerberg, head of the Western U.S. region for Mesa West Capital, stated that the firm was interested in the neighborhood's "unique character." But with the popular Los Angeles neighborhood facing an affordable housing crisis and skyrocketing rents, some are wondering if Mesa West's decision was driven by the potential for profitable returns rather than the neighborhood's charm.

One industry expert, who preferred to remain anonymous, stated, "It's no coincidence that Mesa West is interested in refinancing this property in Los Feliz, a neighborhood that has seen a surge in young, affluent residents in recent years. It's clear that they are looking to capitalize on the demand for luxury apartments in this area."

The article also notes that Mesa West's interest in Los Feliz may not be entirely altruistic. The firm has a history of investing in neighborhoods that have undergone gentrification, leading some to question if this deal is part of a larger trend of displacement and disregard for the needs of long-term residents.

This article originally appeared on The Real Deal. Click here to read the full story.