Bay Area Senior Housing Secures $67M Refi

Westmont of Milpitas. Image courtesy of Mesa West Capital

SRM Development has secured $67 million to refinance the recently opened Westmont of Milpitas, a 199-unit senior housing property in Milpitas, Calif. Mesa West Capital provided the 5-year, floating rate, non-recourse loan that retires the construction financing. SRM developed, while Westmont Living manages the community.

Built in late 2020, the LEED Silver certified community opened in February 2021. Leasing was slow because of the pandemic, but the community is well positioned to benefit from demographic and market dynamics, Matt Snyder, executive director at Mesa West Capital, said in prepared remarks. Snyder added that Westmont of Milpitas is the only senior housing community in the area offering three levels of care and has little competition within a 5-mile radius.

Demand for senior housing across many U.S. markets was near record highs in the second half of last year, with 21,000-plus units absorbed, according to the National Investment Center for Seniors Housing & Care. Occupancy followed demand, aided by slow inventory growth.

New senior housing in Milpitas

Located at 80 Cedar Way, the senior housing community is some 6 miles north of downtown San Jose. San Jose’s Regional Medical Center is less than 6 miles southeast, while Norman Y. Mineta San Jose International Airport is 4 miles southwest. Several retail, dining and entertainment options are available within a 2-mile radius.

The four-story, 266,791-square-foot property offers 163 assisted living units, 28 memory care units, as well as eight independent living units. Community amenities include a commercial kitchen, activity room, beauty salon, dining room, pool, fitness room and chapel. Lounge areas. a library and an arts & crafts room are also available.