Dealmaker: Mesa West Capital Funds $67M Loan in Silicon Valley
Mesa West Capital, Los Angeles, provided a joint venture led by SRM Development, Spokane, Wash., with $67 million for Westmont of Milpitas, a recently opened senior housing community in Milpitas, Calif.
Developed by SRM, Westmont of Milpitas delivered in late 2020 and was introduced to the market in February 2021 in the midst of the pandemic, which severely impacted the entire senior housing sector. Although leasing was slow at the time due to COVID-19, the community is well-positioned to benefit from the local demographics and market dynamics, said Mesa West Executive Director Matt Snyder, who led the origination team from the firm’s Chicago office.
“Milpitas is part of the San Jose metro, which has above average population growth of persons 75 and older and strong average and median household income, which is beneficial for senior housing product,” Snyder said. “As the only senior housing community in the area offering three levels of care and with little competitive supply within a five-mile radius of the community, we expect the sponsors to stabilize the community relatively quickly, especially as we move the Coronavirus from pandemic to endemic.”
The four-story community has 163 assisted-living, 28 memory care and eight independent living units. Located at 80 Cedar Way, Westmont of Milpitas is within seven miles of four full-service hospitals and medical centers.
Joint venture partner Westmont Living, La Jolla, Calif., manages the asset.
Proceeds from the five-year floating-rate non-recourse loan paid off the property’s existing construction loan.