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Office Properties Income Trust Commences the Implementation of its Financing Strategy for its Merger with Diversified Healthcare Trust with the Closing of a $30.7 Million Mortgage Loan
New Loan Secured by a Government Occupied Property in Landover, Maryland NEWTON, Mass.--(BUSINESS WIRE)-- Office Properties Income Trust (Nasdaq: OPI) today
About this update from Diversified Healthcare Trust
[{"type":"text","content":"\nNew Loan Secured by a Government Occupied Property in Landover, Maryland\n\n\n NEWTON, Mass.--(BUSINESS WIRE)--\nOffice Properties Income Trust (Nasdaq: OPI) today announced that it has commenced the implementation of its financing strategy for its merger with Diversified Healthcare Trust (Nasdaq: DHC) with the closing of a $30.7 million loan secured by a 266,000 square foot, 100% government occupied property located in Landover, Maryland. This non-recourse, 10-year CMBS loan carries an all-in fixed interest rate of 7.21% with five years of interest-only payments followed by five years of amortization on a 30-year amortization period. The loan to value ratio on the financing is nearly 50% and the implied capitalization rate based on the appraised value is 6.2%.\n\n\nAs previously disclosed, in connection with the announcement of OPI’s proposed merger with DHC, OPI obtained a bridge loan commitment from JPMorgan Chase Bank, NA for $368 million of proceeds. OPI’s overall financing strategy is to separately secure loans on certain of the bridge loan collateral properties on more attractive terms than the bridge loan facility, and this new loan is the first step in implementing that strategy. OPI is in active discussions for other financings of bridge loan collateral properties prior to, or simultaneous with, the closing of the merger, which is expected to occur during the third quarter of 2023.\n\n\nMatthew Brown, OPI’s Chief Financial Officer and Treasurer, made the following statement:\n\n\n“This loan serves as a testament to OPI’s highly financeable portfolio of properties. The fact that we were able to readily execute this mortgage in today’s market conditions speaks to the financial community’s confidence in OPI and our high-quality assets. We plan to leverage our high quality portfolio to finance our acquisition of DHC on more attractive terms than the bridge provides.”\n\n\nAbout Office Properties Income Trust\n\n\nOPI is a national real estate investment trust focused on owning and leasing high quality office and mixed-use properties in select growth-oriented U.S. markets. As of March 31, 2023, approximately 63% of OPI's revenues were from investment grade rated tenants. OPI owned and leased 157 properties as of March 31, 2023, with approximately 20.9 million square feet located in 30 states and Washington, D.C. In 2023, ...