In July of last year, SNH used the 11 Fan Pier and 50 Northern Ave. properties as collateral to secure $620 million in financing from Morgan Stanley and Citi to pay down a lion's share of its debt under a $1-billion unsecured revolving credit facility.

Senior Housing Properties Trust expects to use the cash proceeds from the joint venture to repay a portion of the amounts outstanding under its revolving credit facility.

SNH says the company will continue to control the two buildings because its partner in the joint venture “is a passive financial investor.” Eastdil Secured acted as SNH's advisor and Sullivan & Worcester LLP provided legal counsel to SNH in the joint venture transaction.

BOSTON—Senior Housing Properties Trust has formed a joint venture with an unnamed investor on the ownership of two Seaport office buildings that are chiefly occupied by Vertex Pharmaceuticals, Inc.

For its approximately $261-million capital contribution, the investor will have a 45% stake in the 1.1-million-square-foot complex that includes 11 Fan Pier and 50 Northern Ave. life science buildings. SNH will own the remaining 55% in the properties that are 95% leased to Vertex Pharmaceuticals, Inc. through 2028. The 50 Northern Ave. building serves as Vertex's corporate headquarters.

David Hegarty, president and COO of SNH, says of the joint venture deal, “We are pleased to announce SNH's first joint venture transaction to own property. This transaction highlights the increased value of these two well-located, well-leased buildings since we acquired them less than three years ago. This transaction also reduces our investment portfolio's concentration in this property and reduces our overall leverage.”

The investment amount was based on a property valuation of $1.2 billion, less $620 million of existing secured debt on the property. Newton-based SNH acquired the two 15-story life science properties and adjacent structure parking in 2014 for $1.125 billion from developer the Fallon Co.

In July of last year, SNH used the 11 Fan Pier and 50 Northern Ave. properties as collateral to secure $620 million in financing from Morgan Stanley and Citi to pay down a lion's share of its debt under a $1-billion unsecured revolving credit facility.

Senior Housing Properties Trust expects to use the cash proceeds from the joint venture to repay a portion of the amounts outstanding under its revolving credit facility.

SNH says the company will continue to control the two buildings because its partner in the joint venture “is a passive financial investor.” Eastdil Secured acted as SNH's advisor and Sullivan & Worcester LLP provided legal counsel to SNH in the joint venture transaction.