UBS and TIAA-CREF refinance MGH offices in Boston with $345m

UBS and TIAA-CREF have teamed up to provide $345m in loans to Davis Marcus Partners for the refinancing of the Charles River Plaza North office/laboratory condominiums in Boston, Massachusetts.

UBS and TIAA-CREF have teamed up to provide $345m in loans to Davis Marcus Partners for the refinancing of the Charles River Plaza North office/laboratory condominiums in Boston, Massachusetts.

UBS provided a $245m securitized first mortgage loan, while TIAA-CREF provided a $100m mezzanine loan, both with 10-year durations. The loan-to-value, based on the property’s estimated $435m value, is nearly 80 percent.

CharlesRiver2The financing takes out $290m in securitized debt used to refinance the property in July of 2007, which was split evenly between the CD 2007-CD5 and COBALT 2007-C3 CMBS securitizations.

The General Hospital Corporation, the parent of Massachusetts General Hospital (MGH) and subsidiary of Partners Healthcare System, leases the entire five-floor office and lab complex, built in 1969 and renovated in 2005.

In April 2014, HFF began marketing the fully-leased, 355,000 sq ft property at 185 Cambridge Street, which is adjacent to the main MGH headquarters, for either an outright sale or a minority partnership. But the company, working as an intermediary, has since pulled the listing and arranged the latest refinancing on behalf of the borrower.

The property is comprised of five distinct research centers, each occupying a floor. They include: Systems Biology, Regenerative Medicine, Computational and Integrative Biology, Photomedicine and Human Genetic Research.

Development firm Davis Marcus Partners was co-founded by Jonathan Davis and Paul Marcus.

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