Mesa West Real Estate Income III raises $677 million for third fund

Los Angeles–based Mesa West Capital has raised $677 million for its closed-end value-added fund Mesa West Real Estate Income Fund III, which is expected to close with $750 million by the third quarter. The fund held a first close in November 2012. Approximately 75 percent of the fund’s investors are public pension funds, and the remaining investors are also institutional.

Mesa West Capital declined to comment on fundraising activities.

Mesa West Real Estate Income Fund III will invest in first mortgages for commercial real estate properties in the United States, a strategy consistent with past funds in the Real Estate Income series. The fund has started to invest its capital and has closed on two acquisitions to date.    

The firm also has another first mortgage–related fund in the market. The Mesa West Core Lending Fund, a core/core-plus open-end fund, has