Senior Housing Properties Trust (SNH) has obtained a $620 million loan that matures in August 2026. The loan is secured by two 15 story, class A life-science buildings, which include 1.65 million gross sqf of lab and corporate office space, structured parking and street level retail located in Boston’s Seaport District. The 10-year loan is non-amortizing and carries a fixed interest rate of 3.53% per annum. SNH acquired the buildings in May 2014 for $1.125 billion when their construction was completed and they are 96 percent leased to Vertex Pharmaceuticals, through 2028. SNH expects to use the proceeds of this loan to repay a portion of the outstanding borrowings under the Company’s $1 billion unsecured revolving credit facility and for general business purposes. The funding was provided by Morgan Stanley and Citi. SNH is managed by the operating subsidiary of The RMR Group Inc. headquartered in Newton, MA.
“We are pleased to take advantage of the current low interest rate environment to term out the majority of the outstanding balance on our unsecured revolving credit facility and to extend the average maturity of our debt to 8.9 years,” said David Hegarty, SNH’s President and Chief Operating Officer. “We believe that this transaction also highlights the value and quality of our medical office and life-science portfolio.”
