Seven Hills Realty Trust Closes $16.0 Million Bridge Loan to Recapitalize a Hotel in Orlando, Florida
Seven Hills Realty Trust (Nasdaq: SEVN) has closed a $16.0 million first mortgage floating rate bridge loan for the Home2 Suites by Hilton Lake Mary Orlando, a 123-room extended-stay hotel in Lake Mary, Florida. The loan has a three-year initial term with two one-year extension options. This transaction demonstrates SEVN's ability to close deals in a competitive market while diversifying its portfolio with a premium hotel asset.
The property is strategically located within the Lake Mary Wellness and Technology Park, approximately 15 miles north of Downtown Orlando and 30 miles from Disney World. SEVN's manager, Tremont Realty Capital, was introduced to the deal by Highgate, a repeat borrower. SEVN aims to expand its presence across key asset classes and generate attractive risk-adjusted returns for shareholders.
Seven Hills Realty Trust (Nasdaq: SEVN) ha chiuso un prestito ponte a tasso variabile di 16,0 milioni di dollari per l'Home2 Suites by Hilton Lake Mary Orlando, un hotel per soggiorni prolungati con 123 camere a Lake Mary, Florida. Il prestito ha un termine iniziale di tre anni con due opzioni di estensione di un anno. Questa transazione dimostra la capacità di SEVN di concludere affari in un mercato competitivo, diversificando nel contempo il suo portafoglio con un asset alberghiero di alta qualità.
La proprietà è strategicamente situata all'interno del Lake Mary Wellness and Technology Park, circa 15 miglia a nord di Downtown Orlando e a 30 miglia da Disney World. Il gestore di SEVN, Tremont Realty Capital, è stato introdotto all'affare da Highgate, un mutuatario abituale. SEVN mira ad espandere la propria presenza attraverso classi di asset chiave e generare ritorni interessanti a rischio aggiustato per gli azionisti.
Seven Hills Realty Trust (Nasdaq: SEVN) ha cerrado un préstamo puente a tasa flotante de 16,0 millones de dólares para el Home2 Suites by Hilton Lake Mary Orlando, un hotel de estancias prolongadas con 123 habitaciones en Lake Mary, Florida. El préstamo tiene un plazo inicial de tres años con dos opciones de extensión de un año. Esta transacción demuestra la capacidad de SEVN para cerrar negocios en un mercado competitivo, al tiempo que diversifica su cartera con un activo hotelero premium.
La propiedad se encuentra estratégicamente ubicada dentro del Lake Mary Wellness and Technology Park, aproximadamente a 15 millas al norte del centro de Orlando y a 30 millas de Disney World. El gestor de SEVN, Tremont Realty Capital, fue presentado a este trato por Highgate, un prestatario recurrente. SEVN busca ampliar su presencia en clases de activos clave y generar atractivos retornos ajustados al riesgo para los accionistas.
세븐 힐스 리얼티 트러스트(Nasdaq: SEVN)는 플로리다주 레이크 메리의 홈2 스위트 바이 힐튼 레이크 메리 올랜도에 대해 1600만 달러의 변동 금리 첫 번째 모기지 브리지 대출을 완료했습니다. 이 대출은 3년의 초기 기간과 1년 연장 옵션 2개가 있습니다. 이 거래는 SEVN이 경쟁이 치열한 시장에서 거래를 성사시키는 능력을 보여주며 프리미엄 호텔 자산으로 포트폴리오를 다양화하고 있음을 나타냅니다.
이 부동산은 레이크 메리 웰니스 및 기술 공원 내 전략적으로 위치하고 있으며, 올랜도 다운타운에서 약 15마일 북쪽에 위치하고 있으며 디즈니 월드에서 30마일 떨어져 있습니다. SEVN의 관리자인 트레몬트 리얼티 캐피탈은 반복 차입자인 하이게이트를 통해 이 거래를 소개받았습니다. SEVN은 주요 자산 클래스 전반에 걸쳐 존재감을 확대하고 주주를 위한 매력적인 위험 조정 수익을 창출하는 것을 목표로 하고 있습니다.
Seven Hills Realty Trust (Nasdaq: SEVN) a conclu un prêt relais à taux flottant de 16,0 millions de dollars pour l'Home2 Suites by Hilton Lake Mary Orlando, un hôtel de séjour prolongé de 123 chambres à Lake Mary, en Floride. Le prêt a une durée initiale de trois ans avec deux options d'extension d'un an. Cette transaction démontre la capacité de SEVN à conclure des affaires sur un marché compétitif tout en diversifiant son portefeuille avec un actif hôtelier premium.
La propriété est stratégiquement située au sein du Lake Mary Wellness and Technology Park, à environ 15 miles au nord du centre-ville d'Orlando et à 30 miles de Disney World. Le gestionnaire de SEVN, Tremont Realty Capital, a été introduit à l'affaire par Highgate, un emprunteur fréquent. SEVN vise à accroître sa présence dans des classes d'actifs clés et à générer des rendements intéressants ajustés au risque pour les actionnaires.
Seven Hills Realty Trust (Nasdaq: SEVN) hat ein Brückendarlehen über 16,0 Millionen Dollar mit variablen Zinssätzen für das Home2 Suites by Hilton Lake Mary Orlando abgeschlossen, ein extended-stay Hotel mit 123 Zimmern in Lake Mary, Florida. Das Darlehen hat eine dreijährige anfängliche Laufzeit mit zwei einjährigen Verlängerungsoptionen. Diese Transaktion zeigt die Fähigkeit von SEVN, in einem wettbewerbsintensiven Markt Geschäfte abzuschließen, während das Portfolio mit einem Premium-Hotelasset diversifiziert wird.
Die Immobilie befindet sich strategisch im Lake Mary Wellness and Technology Park, etwa 15 Meilen nördlich von Downtown Orlando und 30 Meilen von Disney World entfernt. Der Manager von SEVN, Tremont Realty Capital, wurde von Highgate, einem wiederkehrenden Kreditnehmer, auf den Deal aufmerksam gemacht. SEVN zielt darauf ab, seine Präsenz in wichtigen Anlageklassen auszubauen und für die Aktionäre attraktive risikoadjustierte Renditen zu erzielen.
- Closed a $16.0 million first mortgage floating rate bridge loan
- Diversified portfolio with a premium hotel asset
- Strategic location near Orlando's major attractions
- Repeat business with established borrower (Highgate)
- Demonstrated ability to close deals in a competitive market
- None.
Insights
The $16.0 million bridge loan to recapitalize a hotel in Orlando marks a strategic move for Seven Hills Realty Trust (SEVN). This transaction demonstrates SEVN's ability to execute deals in a competitive market while diversifying its portfolio. The three-year term with two one-year extension options provides flexibility for the borrower and potential for extended income for SEVN. The location of the property in the Lake Mary Wellness and Technology Park, with proximity to Orlando's major attractions, suggests strong potential for consistent occupancy rates. However, investors should note that the floating rate nature of the loan exposes SEVN to interest rate risk in the current volatile economic environment. The partnership with Highgate, a repeat borrower, indicates SEVN's focus on building reliable relationships in the real estate financing sector.
The recapitalization of the Home2 Suites by Hilton Lake Mary Orlando is a savvy move in the current market. Extended-stay hotels have shown resilience post-pandemic, often outperforming traditional hotels. The 123-room property's recent construction is a significant advantage, likely featuring modern amenities and energy-efficient systems that can help maintain operational costs. The location within a wellness and technology park suggests a steady stream of business travelers, complementing potential leisure guests visiting Orlando's attractions. However, investors should be aware of the cyclical nature of the hospitality industry and potential oversupply risks in the Orlando market. SEVN's strategy of diversifying into premium hotel assets could provide a hedge against volatility in other real estate sectors, but it also exposes them to the specific risks associated with the hospitality industry.
This deal reflects broader trends in the real estate investment market. With rising interest rates and economic uncertainty, bridge loans are becoming increasingly attractive to both lenders and borrowers. For SEVN, this $16.0 million loan represents a calculated risk in a high-demand sector. The Orlando hotel market has been rebounding strongly post-pandemic, with RevPAR (Revenue Per Available Room) showing significant growth. However, investors should monitor potential headwinds such as inflation impacts on travel spending and any signs of economic slowdown. The focus on an extended-stay property is particularly noteworthy, as this segment has shown resilience due to longer average stays and lower operational costs. SEVN's mention of an active pipeline of quality opportunities suggests a bullish outlook on the commercial real estate lending market, which could signal potential for further portfolio growth and diversification.
The loan has a three-year initial term with two one-year extension options, subject to the borrower meeting certain requirements. SEVN’s manager, Tremont Realty Capital, was introduced to the transaction by Highgate, a
Tom Lorenzini, President and Chief Investment Officer of SEVN, made the following statement:
“This transaction exemplifies SEVN’s ability to close deals in a competitive and challenging market, while also enhancing the diversity of our portfolio with a premium hotel asset. The property is well located, situated within the Lake Mary Wellness and Technology Park, approximately 15 miles north of
About Seven Hills Realty Trust
Seven Hills Realty Trust (Nasdaq: SEVN) is a real estate investment trust, or REIT, that originates and invests in first mortgage loans secured by middle market and transitional commercial real estate. SEVN is managed by Tremont Realty Capital, an affiliate of The RMR Group (Nasdaq: RMR), a leading
WARNING CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These statements may include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “will,” “may” and negatives or derivatives of these or similar expressions. These forward-looking statements include, among others, statements about SEVN’s investment focus, ability to complete additional loan investments in the future and ability to generate attractive risk adjusted returns for shareholders. Forward-looking statements reflect SEVN’s current expectations, are based on judgments and assumptions, are inherently uncertain and are subject to risks, uncertainties and other factors, which could cause SEVN’s actual results, performance or achievements to differ materially from expected future results, performance or achievements expressed or implied in those forward-looking statements. Some of the risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements include, but are not limited to, the following: the ability of SEVN to make additional investments; the success of SEVN’s investments; SEVN’s available liquidity, access to capital and cost of capital; and various other matters. These risks, uncertainties and other factors are not exhaustive and should be read in conjunction with other cautionary statements that are included in SEVN’s periodic filings with the Securities and Exchange Commission, or SEC. The information contained in SEVN’s filings with the SEC, including under the caption “Risk Factors” in its periodic reports, or incorporated therein, identifies important factors that could cause SEVN’s actual results to differ materially from those stated in or implied by SEVN’s forward-looking statements. SEVN’s filings with the SEC are available on the SEC’s website at www.sec.gov. You should not place undue reliance upon forward-looking statements. Except as required by law, SEVN does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.
A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.
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Timothy Bonang, Senior Vice President
(617) 231-3223
www.sevnreit.com
Source: Seven Hills Realty Trust
FAQ
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