Mesa West Capital has provided AEW Capital Management L.P., (“AEW”) with $114.6 million in first mortgage debt across two loans to refinance senior housing communities in the Philadelphia and Washington, DC metros. The floating rate loans were secured by Echo Lake in Malvern, Pennsylvania and Modena Reserve at Kensington, in Kensington, Maryland.
AEW delivered it to market in 2020 alongside joint venture partner Sage Senior Living, Inc., which operates the community. Echo Lake offers a mix of independent and assisted living and memory care units in a five-story 312,000-square-foot building. The two residential wings are connected by an expansive central amenities space that includes a health and medical center with a visiting physician’s office, fitness center, multiple dining rooms, rooftop pub, sports simulation lounge, movie theater, and salon and spa.
AEW delivered it to market in 2021 with joint venture partners McCaffery Interests and Solera Senior Living, which oversees community operations. The 167,823-square-foot community offers independent and assisted living and memory care units supported by a strong amenity base that includes resident lounges, art studio, beauty salon and service bar, coffee shop, fitness center, massage suite, visiting physician office, theater and outdoor courtyard with walking paths and fire pits.
Both communities are located in suburban markets exhibiting excellent market fundamentals for seniors housing such as above average per capita income, strong median home values and a growing senior population.
“Philadelphia and DC demonstrate the growth of the aging population across the United States, which has created a massive demand tailwind for quality senior housing and services. Yet despite demographic evidence, the senior living industry has experienced decelerating supply growth since the onset of the pandemic,” said Mesa West Executive Director Matt Snyder, who led the origination team along with Vice President Brian Hahn and Analyst Boyd Howard out of the private lender’s Chicago and New York offices. “Against this backdrop, the strength and experience of sponsorship, the quality of construction and the level of services position Echo Lake and Modena Reserve to perform very well against the competitive set in their respective markets.”
The Echo Lake financing was arranged by Senior Managing Director Sarah Anderson and Analyst Nina del Pozo of Newmark’s Dallas office. The Modena Reserve financing was arranged by Managing Director Steve Muth, Managing Director Austin Sacco, AVP Alec Rosenfeld and Analyst Harris Inoff.
