Senior Housing Properties Trust (SNH) has formed a joint venture with a sovereign institutional investor to acquire 11 Fan Pier and 50 Northern Avenue in Boston, MA. The investor will contribute approximately $261 million for a 45 percent equity interest in the new venture, with SNH owning the remaining 55 percent. The investment volume is based on a property valuation of $1.2 billion, less $620 million of existing secured debt on the property.
Senior Housing Properties Trust purchased the assets for $1.125 billion in May of 2014. The properties consist of two 15 story, class A Ledd-accredited life-science buildings with structured parking located in Boston’s Seaport District. The two buildings are 95 leased leased to Vertex Pharmaceuticals, Inc. until 2028 and include 1.1 million rentable square feet of lab, corporate office and street level retail space. SNH expects to use the cash proceeds from this transaction to repay a portion of the balance on its its revolving credit facility.
David Hegarty, President and Chief Operating Officer of SNH said the transaction highlighted the increased value of the two well-located buildings since their acquisition less than three years ago. “This transaction also reduces our investment portfolio’s concentration in this property and reduces our overall leverage.”
