Business
The RMR Group Announces $1.0 Billion Refinancing of Vertex Pharmaceuticals’ Headquarters in Boston Seaport District
NEWTON, Mass.--(BUSINESS WIRE)-- The RMR Group (Nasdaq: RMR) today announced on behalf of its managed joint venture that it has facilitated a $1.0 billion
About this update from Diversified Healthcare Trust
[{"type":"text","content":" NEWTON, Mass.--(BUSINESS WIRE)--\nThe RMR Group (Nasdaq: RMR) today announced on behalf of its managed joint venture that it has facilitated a $1.0 billion five-year, interest-only fixed rate mortgage financing with a weighted-average interest rate of 5.5957%, secured by Vertex Pharmaceuticals Incorporated’s (“Vertex”) 1.1 million square foot headquarters at 50 Northern Avenue and 11 Fan Pier Boulevard in the Boston Seaport district. The financing proceeds will primarily be used to repay the existing $620 million fixed rate mortgage financing on the property with an anticipated repayment date in 2026, fund leasing reserves, and repatriate cash. The lease with Vertex for the property was recently extended for approximately 15 years and now expires in June 2044.\n\n\nAdam Portnoy, President and Chief Executive Officer of RMR, made the following statement:\n\n\n“RMR is pleased to have facilitated this refinancing for our private capital clients following a long-term lease extension by the anchor tenant. This financing allows us to recapitalize the joint venture’s debt at a leverage level appropriate for a well leased, high quality asset, while capitalizing outstanding tenant inducements associated with the lease extension, and securing a competitive fixed interest rate.”\n\n\nThe properties leased to Vertex are owned by a joint venture, for which RMR provides asset and property management services. The primary owners of the venture are private institutional investors and Diversified Healthcare Trust (Nasdaq: DHC), an RMR client, owns a 10% equity interest. Morgan Stanley Bank, N.A., Bank of Montreal, Goldman Sachs and J.P. Morgan provided the financing, represented by Dechert LLP. Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to the borrower in this transaction.\n\n\nAbout The RMR Group\n\n\nThe RMR Group is a leading U.S. alternative asset management company, unique for its focus on commercial real estate (CRE) and related businesses. RMR’s vertical integration is supported by nearly 900 real estate professionals in more than 30 offices nationwide who manage approximately $40 billion in assets under management and leverage more than 35 years of institutional experience in buying, selling, financing and operating CRE. RMR benefits from a scalable platform, a deep and experienced management team and a diversity o...