Seven Hills Realty Trust Closes $47.0 Million Bridge Loan to Finance the Acquisition and Renovation of an Industrial Property in Passaic, New Jersey

Rhea-AI Summary

Seven Hills Realty Trust (Nasdaq: SEVN) has secured a $47.0 million first mortgage floating-rate bridge loan aimed at financing the acquisition and renovation of a 330,000 square foot industrial warehouse in Passaic, New Jersey. An initial $38.4 million was funded at closing, with potential future advances of $8.6 million. This transaction marks SEVN's sixth loan closing this year, increasing its committed capital to over $760 million. The loan is set for a three-year term with two one-year extensions, emphasizing SEVN's strategy to grow and diversify its portfolio.

Positive

• $47.0 million loan secured for industrial warehouse acquisition, enhancing asset portfolio.
• Increased committed capital to over $760 million indicating strong investment activity.
• Potential for further advances of $8.6 million for capital expenditures and tenant improvements.

Negative

• Future growth dependent on ability to secure additional capital and execute loans amidst market conditions.

NEWTON, Mass.--(BUSINESS WIRE)-- Seven Hills Realty Trust (Nasdaq: SEVN) today announced the closing of a $47.0 million first mortgage floating-rate bridge loan to finance the acquisition and renovation of a 330,000 square foot industrial warehouse property located at 153 Linden Street in Passaic, New Jersey.

An initial advance of $38.4 million was funded at closing with future advances of up to approximately $8.6 million available for capital expenditures, tenant improvements and leasing commissions. 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 JLL Capital Markets, which advised the sponsor, Thor Equities.

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

“We continue to expand and diversify SEVN’s portfolio with the closing of this $47.0 million loan secured by an industrial facility located in one of the strongest submarkets in the country with convenient access to the Port of New York and New Jersey as well as Newark Liberty International Airport. This is our sixth loan closing this year and increases SEVN’s committed capital to more than $760 million. We remain excited about the future of our business as we continue to evaluate attractive opportunities to deploy debt capital, further grow our portfolio and support higher risk adjusted returns for our shareholders.”

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/20220913005838/en/

Kevin Barry, Director, Investor Relations

(617) 658-0776

www.sevnreit.com

Source: Seven Hills Realty Trust

FAQ

What is the purpose of the $47.0 million loan for Seven Hills Realty Trust?

The loan is intended to finance the acquisition and renovation of a 330,000 square foot industrial warehouse in Passaic, New Jersey.

How much committed capital does Seven Hills Realty Trust have after this loan?

After this loan, Seven Hills Realty Trust's committed capital increases to over $760 million.

What are the terms of the new bridge loan for SEVN?

The loan has a three-year initial term with two one-year extension options, subject to borrower requirements.

What risks are associated with the new loan and future growth of SEVN?

The growth is subject to securing additional cost-effective capital and the competitive nature of the real estate finance industry.