Senior Housing Properties Trust Secures $620M Loan for Life Sciences Buildings in Boston

by Nellie Day

BOSTON — Senior Housing Properties Trust (NYSE: SNH) has obtained a $620 million mortgage loan for two life sciences buildings in Boston’s Seaport District. The 15-story, Class A towers include 1.6 million square feet of lab space, corporate office space, structured parking and ground-floor retail space.

SNH purchased the towers in May 2014 for $1.1 billion. They are 96 percent leased to Vertex Pharmaceuticals through 2028. Vertex is the manufacturer of hepatitis C and cystic fibrosis pharmaceutical treatments.

The 10-year loan is interest-only, carries a fixed interest rate of 3.53 percent and matures in August 2026. SNH will use the loan proceeds to repay a portion of the outstanding borrowings under the company’s $1 billion unsecured revolving credit facility, as well as for general business purposes. Following the repayment, there will be approximately $900 million available under SNH’s unsecured revolving credit facility.

“We are pleased 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,” says David Hegarty, SNH’s president and chief operating officer. “We believe that this transaction also highlights the value and quality of our medical office and life-science portfolio.”

Morgan Stanley and Citi provided the capital for the loan. Eastdil Secured acted as SNH’s advisor and Skadden, Arps, Slate, Meagher & Flom LLP provided legal counsel to SNH in this transaction.

SNH is a REIT that owns seniors housing communities, medical office buildings and wellness centers throughout the United States. It is based in the Boston suburb of Newton. The company’s stock price closed at $22.07 per share on Friday, July 15, up from $17.71 one year ago.

— Nellie Day

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