Mesa West Finances $61.5M Refinancing of Sunnyvale Class A Office Building

LBA Realty has secured $61.5 million to refinance a 125,000-square-foot Class A office building at 285 Sobrante Way in Sunnyvale, California. Mesa West provided the loan, and the JLL Capital Markets team arranged the transaction.

Mesa West vice president Hoony Shin said Sunnyvale has seen no new Class A office deliveries in recent years, even as the technology sector has expanded alongside artificial intelligence. According to JLL data cited in the article, Class A availability fell to 11 percent in the second quarter of 2026, the third straight quarter of decline. Mesa West's head of capital markets, Josh Westerberg, pointed to the region's educated workforce and venture capital activity as ongoing drivers.

The property opened in 2021 and includes on-site solar generation. LBA Realty bought it in June 2025 for $42.3 million after the building had been in receivership for nearly a year following defaults on construction debt by prior owners.

For developers and lenders, the deal points to continued financing appetite for well-leased Class A office in tight Peninsula submarkets, even as older office stock faces scrutiny.