Mesa West Capital Provides $47M Refi for Virginia Senior Living Community
Discovery Village at the West End spans 37 acres and holds 219 units of assisted and independent living for seniors
By Brian Pascus July 15, 2024 2:38 pm
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Discovery Senior Living, one of the five largest senior housing managers in the U.S., has secured $47 million to refinance Discovery Village at the West End, a 219-unit independent and assisted living community in Richmond, Va. that holds spans 37 acres across two buildings.
Mesa West Capital provided the floating rate loan and was led by Executive Director Matthew Snyder’s origination team, which included Brian Hahn and Boyd Howard. The financing was arranged by BWE’s Taylor Mokris, Ryan Stoll, Kim Huffstutler and Emma Wolmer.
Located at 9801 Harmony Woods Way, only 12 miles outside of downtown Richmond, Discovery Village at the West End opened in phases between 2011 and 2015. Its made up of two buildings: a four-story structure that holds 60 assisted living and 35 memory care units, and a four-story independent living facility with 124 units.
The facility is expected to benefit from favorable demographic trends as recent U.S. Census data shows that Richmond’s senior population represents 10 percent of all city residents.
Plus, the senior living market continues to be strong with a Green Street report showing it has experienced 3 percent occupancy growth and 5 percent rent increases nationally in 2024.
“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 Snyder in a statement. “Discovery Village at the West End is a reflection of that demographic trend, and we plan to be an active lender in the space.”
Mesa West’s Hahn noted that, even though roughly 2,500 senior housing units have been built in Richmond in the last 15 years, Discovery Village at the West End “has outperformed most of the assets in the competitive set,” and the site has executed capital improvements – the complex includes a movie theater, on-site physical, occupational & speech therapy and group fitness classes.
“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,” he added.
Discovery Senior Living did not respond to requests for comment.
Brian Pascus can be contacted at bpascus@commercialobserver.com
