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Senior Housing Trust Lands $620M in Financing

BOSTON—Senior Housing Properties Trust acquired the two life science buildings totaling 1.65 million square feet in May 2014 for $1.125 billion from the Fallon Co.

By John Jordan | johnjordan | | Updated on July 19, 2016
An aerial view of Vertex Pharmaceutical's headquarters at 50 Northern Ave. and 11 Fan Pier Blvd. An aerial view of Vertex Pharmaceutical’s headquarters at 50 Northern Ave. and 11 Fan Pier Blvd.
BOSTON—Senior Housing Properties Trust reports it has secured $620 million in financing to pay down a lion’s share of its debt under a $1-billion unsecured revolving credit facility. The loan to the Newtown, MA-based REIT is collateralized by its 50 Northern Ave. and 11 Fan Pier Blvd. office towers in the Seaport District of Boston. Senior Housing Properties Trust acquired the two life science buildings totaling 1.65 million square feet in May 2014 for $1.125 billion from the Fallon Co. The two buildings are 96% leased to Vertex Pharmaceuticals, which consolidated several area offices to the property around the time of the purchase and currently utilizes the complex as its corporate headquarters. The properties also feature structured parking and street level retail. The 10-year loan is non-amortizing and carries a fixed interest rate of 3.53% per annum. The company expects to use the proceeds of this loan to repay a portion of the outstanding borrowings under its $1-billion unsecured revolving credit facility and for general business purposes. Following the repayment, there will be approximately $900 million available under SNH’s unsecured revolving credit facility, the company reports. The latest loan financing was provided by Morgan Stanley and Citi. Eastdil Secured acted as SNH’s advisor and Skadden, Arps, Slate, Meagher & Flom LLP provided legal counsel to SNH in this transaction. “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.”

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