Seven Hills Realty Trust Closes $31.5 Million Bridge Loan to Finance the Acquisition of Summit Apartments in Farmington Hills, Michigan

Rhea-AI Summary

Seven Hills Realty Trust (Nasdaq: SEVN) has closed a $31.5 million first mortgage floating-rate bridge loan to finance the acquisition of Summit Apartments, a 154-unit multifamily property in Farmington Hills, Michigan. An initial advance of approximately $28.5 million was made, with up to $3 million available for future capital expenditures. The loan, secured by a fully leased complex, is expected to support future growth as SEVN targets nearly $1 billion in assets. The portfolio now exceeds $700 million in committed capital.

Positive

• Secured a $31.5 million loan for strategic acquisition of Summit Apartments.
• Portfolio exceeds $700 million in committed capital, indicating strong growth potential.
• Experienced sponsors involved, enhancing investment confidence.

Negative

• Loan structure includes risks tied to competitive market conditions.
• Future loan closings and business growth remain uncertain due to external factors.

NEWTON, Mass.--(BUSINESS WIRE)-- Seven Hills Realty Trust (Nasdaq: SEVN) today announced the closing of a $31.5 million first mortgage floating-rate bridge loan to finance the acquisition and repositioning of Summit Apartments, a 154-unit multifamily property located at 29925-30205 Summit Drive in Farmington Hills, Michigan.

An initial advance of approximately $28.5 million was funded at closing with future advances of up to $3.0 million available for capital expenditures. The loan is structured with a three-year initial term and two one-year extension options, subject to the borrower meeting certain requirements. SEVN’s manager, Tremont Realty Capital, was introduced to the transaction by Q10|Lutz Financial Services, which advised the joint venture sponsorship between Andover Real Estate Partners and M Group, LLC.

Tom Lorenzini, President of SEVN, made the following statement:

“We continue to execute on our plan to grow SEVN’s loan book to nearly $1 billion in assets with the closing of this mortgage loan. This loan is secured by a fully leased apartment complex in a densely populated Detroit suburb and supported by sponsors with significant experience investing in multifamily real estate. Our portfolio now exceeds $700 million of committed capital and we look forward to further increasing loan production and positioning SEVN for future growth.”

About Seven Hills Realty Trust

Seven Hills Realty Trust (Nasdaq: SEVN) is a real estate finance company 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 U.S. alternative asset management company with over $37 billion in assets under management and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. For more information about SEVN, please visit www.sevnreit.com.

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. Also, whenever SEVN uses words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “will,” “may” and negatives or derivatives of these or similar expressions, SEVN is making forward-looking statements. These forward-looking statements are based upon SEVN’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by SEVN’s forward-looking statements as a result of various factors. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond SEVN’s control. For example:

• This press release references a recent loan closed and future plans to expand SEVN, which may imply that SEVN will close additional loans and that its business will continue to improve as a result. However, SEVN’s business and ability to execute loans and realize its investment objective are subject to various risks, including the competitive nature of the industry in which it operates, as well as other factors, many of which are outside its control, such as the COVID-19 pandemic. These risks and other factors may prevent SEVN from successfully closing additional loans, executing its business plans and realizing its investment objective. Further, once SEVN invests or commits its remaining capital, its ability to continue to grow and fund loans will be subject to its ability to obtain additional cost-effective capital or to redeploy proceeds from repayments of its loan investments. Additionally, any growth of its loan portfolio may not benefit SEVN if, for example, SEVN does not realize the returns it expects from that growth.

The information contained in SEVN’s filings with the Securities and Exchange Commission, or SEC, including under “Risk Factors” in SEVN’s periodic reports or incorporated therein, identifies other 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220606006066/en/

Kevin Barry, Director, Investor Relations

(617) 658-0776

www.sevnreit.com

Source: Seven Hills Realty Trust

FAQ

What is the purpose of the loan closed by Seven Hills Realty Trust?

The $31.5 million loan is intended to finance the acquisition and repositioning of Summit Apartments in Farmington Hills, Michigan.

What is the significance of the Summit Apartments acquisition for SEVN?

The acquisition supports SEVN's strategy to grow its loan book towards $1 billion in assets, enhancing its portfolio.

What are the financial details of the loan for Summit Apartments?

An initial advance of approximately $28.5 million was provided, with up to $3 million available for future capital expenditures.

How is the loan secured for Summit Apartments?

The loan is secured by a fully leased apartment complex located in a densely populated area of the Detroit suburb.

What challenges does SEVN face regarding future growth?

SEVN's growth is subject to various risks including competitive market conditions and external uncertainties impacting business operations.