Mesa West Capital has provided a $47 million loan to refinance Discovery Village at the West End, a 219-unit, two-building senior housing community in Richmond, Virginia.
The floating-rate loan is secured by the 37-acre community built between 2011 and 2015. The property comprises a three-story building with 60 assisted living and 35 memory care units and a four-story independent living facility with 124 one- and two-bedroom units. Discovery Village at the West End is operated by Discovery Senior Living, one of the five largest senior housing managers in the United States.
“As an asset class, senior living continues to attract significant institutional investment due in large part to the aging of the baby boom generation,” said Mesa West Capital Executive Director Matthew Snyder who led the origination team, which included Vice President Brian Hahn and Analyst Boyd Howard. “Discovery Village at the West End is a reflection of that demographic trend, and we plan to be an active lender in the space.”
Nationally, growth of the senior living sector is projected to remain strong with high single-digit market revenue per available foot growth in 2024, driven by 3.0% occupancy growth and 5.0% rent increases, according to Green Street.
“Approximately 2,500 senior housing units have been built in Richmond since 2008. Discovery Village at the West End has outperformed most of the assets in the competitive set and the sponsor has continued to improve the property by executing strategic capital improvements to maintain a high-quality living environment and a stabilized level of occupancy,” Hahn added. “With a limited number of planned units in the pipeline, there will continue to be a robust supply/demand imbalance for the immediate future, which bodes well for Discovery Village.”
The financing was arranged by Taylor Mokris, Ryan Stoll, Kim Huffstutler and Emma Wolmer at BWE.
