Morgan Stanley and Citi have provided Senior Housing Properties Trust (SNH) with a $620 million mortgage loan to refinance two Vertex Pharmaceuticals-occupied life-sciences buildings in Boston’s Seaport District.
The 10-year non-amortizing loan, which carries a fixed interest rate of 3.53 percent, will be used to repay a portion of outstanding debt on a $1 billion unsecured revolving credit facility, leaving approximately $900 million available, and for “general business purposes,” the seniors housing REIT said in a prepared statement.
The financing allows the REIT 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,” added David Hegarty, SNH’s president and COO.
The loan is secured by two 15-story, class A life-science buildings at 50 Northern Avenue
with 1.65 million sq ft of lab space, corporate office space, structured parking and street level retail, and it matures in August 2026.
The buildings were acquired by SNH in May 2014 for $1.125 billion, when their construction was completed, and they are 96 leased to Vertex through 2028.
SNH, managed by the operating subsidiary of The RMR Group and headquartered in Newton, Massachusetts, owns senior living communities, medical office buildings and wellness centers throughout the US.
Boston-based global biotechnology company Vertex aims to discover, develop and commercialize drugs for serious and life-threatening diseases, which in part has focused on cystic fibrosis.