{"id":1004170729,"date":"2017-03-29T02:16:13","date_gmt":"2017-03-29T10:16:13","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004170729"},"modified":"2022-12-08T22:24:52","modified_gmt":"2022-12-09T06:24:52","slug":"senior-housing-properties-partners-on-boston-assets","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/senior-housing-properties-partners-on-boston-assets\/","title":{"rendered":"Senior Housing Properties Partners on Boston Assets"},"content":{"rendered":"<p><em>By Gail Kalinoski<\/em><\/p>\n<p><strong>Boston<\/strong>\u2014Less than a year after refinancing its two Fan Pier properties, Senior Housing Properties Trust has formed a joint venture with an unidentified sovereign institutional investor who bought a minority stake in 11 Fan Pier and 50 Northern Ave. for $261 million.<\/p>\n<div id=\"attachment_1004170733\" style=\"width: 310px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/03\/11-Fan-Pier-and-50-Northern-Ave.-in-Boston.jpg\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1004170733\" data-attachment-id=\"1004170733\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/senior-housing-properties-partners-on-boston-assets\/11-fan-pier-and-50-northern-ave-in-boston\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/03\/11-Fan-Pier-and-50-Northern-Ave.-in-Boston.jpg\" data-orig-size=\"800,601\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"11 Fan Pier and 50 Northern Ave. in Boston\" data-image-description=\"&lt;p&gt;11 Fan Pier and 50 Northern Ave. in Boston&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;11 Fan Pier and 50 Northern Ave. in Boston&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/03\/11-Fan-Pier-and-50-Northern-Ave.-in-Boston.jpg?w=800\" class=\"wp-image-1004170733 size-medium\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/03\/11-Fan-Pier-and-50-Northern-Ave.-in-Boston.jpg\" alt=\"11 Fan Pier and 50 Northern Ave. in Boston\" width=\"300\" height=\"225\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/03\/11-Fan-Pier-and-50-Northern-Ave.-in-Boston.jpg 800w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/03\/11-Fan-Pier-and-50-Northern-Ave.-in-Boston.jpg?resize=300,225 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/03\/11-Fan-Pier-and-50-Northern-Ave.-in-Boston.jpg?resize=768,577 768w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><p id=\"caption-attachment-1004170733\" class=\"wp-caption-text\">11 Fan Pier and 50 Northern Ave. in Boston<\/p><\/div>\n<p>The investor owns 45 percent equity interest in the joint venture with SNH owning the remaining 55 percent. The Newtown, Mass.-based REIT said the investment amount is based on a property valuation of $1.2 billion, with less than $620 million of existing secured debt on the property.<\/p>\n<p>In July, taking advantage of the low interest rate environment, SNH <a href=\"https:\/\/www.commercialsearch.com\/news\/snh-trust-closes-major-mortgage-refi-in-boston\/\" target=\"_blank\" rel=\"noopener\">closed on a new $620 million mortgage<\/a> provided by Morgan Stanley and Citi. The 10-year loan has a fixed interest rate of 3.53 percent and matures in August 2026.<\/p>\n<p>The property in Boston\u2019s hot Seaport District was <a href=\"https:\/\/www.commercialsearch.com\/news\/senior-housing-properties-buys-vertex-pharmaceuticals-global-hq-in-boston-for-1-1b\/\" target=\"_blank\" rel=\"noopener\">acquired in May 2014<\/a> by SNH for $1.1 billion and consists of two 15-story, Class A, LEED Gold certified life science buildings with structured parking. The buildings are connected by a walkway on the sixth floor. Vertex Pharmaceuticals leases 95 percent of the buildings through 2028. Ground-floor retail comprises the remainder of the 1.1 million rentable square feet of space that included labs and corporate offices for Vertex.<\/p>\n<p>SNH, which owns senior living communities, medical office buildings and wellness centers, acquired the buildings in one of the biggest commercial real estate deals in Boston that year. SNH bought the buildings from The Fallon Co. and an institutional investor. Fallon, one of Boston\u2019s leading real estate investment and development companies, had completed the development in December 2013. <a href=\"https:\/\/www.commercialsearch.com\/news\/vertex-pharmaceutical-opens-new-headquarters-at-11-fan-pier-boulevard\/\" target=\"_blank\" rel=\"noopener\">Vertex began moving in<\/a> about 1,300 employees a few months later in early 2014 just before the sale to SNH.<\/p>\n<p>SNH said it will continue to control the property, calling the JV partner a \u201cpassive financial investor.\u201d The REIT expects to use the cash proceeds from the transaction to repay debt owed under its revolving credit facility.<\/p>\n<p>David Hegarty, SNH president &amp; COO, noted that this is the REIT\u2019s first joint venture transaction to own property.<\/p>\n<p>\u201cThis transaction highlights the increased value of these two well-located, well-leased buildings since we acquired them less than three years ago,\u201d Hegarty said in a prepared statement. \u201cThis transaction also reduces our investment portfolio\u2019s concentration in this property and reduces our overall leverage.\u201d<\/p>\n<p>Eastdil Secured acted as SNH\u2019s advisor and Sullivan &amp; Worcester LLP provided legal counsel to SNH.<\/p>\n<p>SNH is managed by the operating subsidiary of The RMR Group, an alternative asset management company headquartered in Newton.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A sovereign institutional investor paid $261 million to acquire a minority interest in the company\u2019s Seaport District Class A towers.<\/p>\n","protected":false},"author":1068,"featured_media":1004170733,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1490,21743,21808,21825,21783,21742,10,21747],"tags":[],"class_list":["post-1004170729","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-boston","category-deals","category-featured","category-finance","category-investment","category-latest","category-northeast","category-office"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - 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Gail has been a freelance writer and editor for more than 20 years, contributing to daily websites, magazines, weekly business newspapers, market intelligence newsletters, research reports, monthly B-to-B and consumer magazines. Earlier in her career, Gail worked for Gannett Corp. as an editor and reporter for 15 years. 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