Mesa West Refinances Sunnyvale Office Property

LBA Realty secured a $61.5 million loan for the 125,000-square-foot office building in Sunnyvale.

Updated on Oct. 27, 2026 in Commercial

Bold flat-color editorial illustration of a geometric corporate building, representing the financial stability of the Sunnyvale commercial office market. — LBA Realty secured a $61.5 million loan from Mesa West to refinance its 125,000-square-foot office property on Sobrante Way in Sunnyvale. AI Illustration. Upload story photo >

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Mesa West has provided $61.5 million in debt to refinance a Class A office property located at 285 Sobrante Way in Sunnyvale. LBA Realty, which acquired the site for $42.3 million in June 2025, will use the financing for the 125,000-square-foot facility.

Why it matters

This transaction highlights renewed interest in Sunnyvale office assets, which had previously entered receivership following a default on construction debt by prior owners SteelWave and Principal Real Estate Investors. The deal occurs as demand for Class A space remains steady in a market that has seen minimal new supply despite ongoing growth in the technology sector.

The 125,000-square-foot property features Class A office space in a market where availability reached 11 percent in the second quarter of 2026. The site first opened for business in 2021.

The players

Mesa West

This private lender specializes in providing commercial real estate debt and financing solutions.

LBA Realty

The firm is an institutional investor that focuses on the acquisition and management of office and industrial properties.

JLL Capital Markets

This division of Jones Lang LaSalle provides investment sales, debt advisory, and equity placement services for real estate clients.

SteelWave

This real estate investment and development firm focuses on commercial projects throughout the Western United States.

Principal Real Estate Investors

The company operates as the dedicated real estate investment management arm of Principal Financial Group.

The details

The JLL Capital Markets team of Kevin MacKenzie, Peter Thompson, and Spencer Bergthold facilitated the financing deal for the office property. This transition marks a recovery for the asset, which previously faced financial distress after the original developers, SteelWave and Principal Real Estate Investors, defaulted on their construction loans.

The office asset originally opened in 2021.
LBA Realty acquired the property for $42.3 million in June 2025.
Class A office availability in the region reached 11 percent during the second quarter of 2026.
Mesa West provided the refinance loan in October 2026.

Culture Shift

This deal underscores a broader trend in suburban commercial real estate where high-quality office assets are being refinanced as markets stabilize. The transaction aligns with recent data from the second quarter of 2026, which shows Class A office availability tightening to 11 percent.

The stabilization of this office property contributes to the ongoing economic activity of the local business community. Residents may see increased occupancy levels at the 285 Sobrante Way address as new tenants move into the Class A space.

The takeaway

The successful refinancing of this property shows that lenders remain active in supporting high-quality office projects despite past defaults in the sector. Investors looking at commercial assets should monitor regional availability rates as a key indicator of property viability.