Seven Hills Realty Trust Invests $37.0 Million in Two New First Mortgage Loans
Seven Hills Realty Trust (NASDAQ:SEVN) today announced the closing of two new first mortgage loan investments totaling $37.0 million, as follows:
- A $19.5 million floating rate first mortgage loan to finance the acquisition of Town Center Plaza, a grocery-anchored retail property located in Palm Desert, California. The property is anchored by nationally recognized retailers and serves an established retail corridor within the Coachella Valley. The loan has a three-year initial term with two one-year extension options, subject to the borrower satisfying certain conditions. The transaction was brought to our manager, Tremont Realty Capital, by Palmer Capital on behalf of the sponsor, United Growth.
- A $17.5 million floating rate first mortgage loan to refinance SpringHill Suites Scottsdale, a 117-room extended stay hotel in Scottsdale, Arizona. Built in 2023, the Marriott-branded property is located within the Papago Plaza development in a submarket supported by strong business and leisure demand. The loan has a three-year initial term with two one-year extension options, subject to the borrower satisfying certain conditions. The transaction was brought to our manager, Tremont Realty Capital, by JLL on behalf of the sponsor, PEG Companies.
Tom Lorenzini, President and Chief Investment Officer of SEVN, made the following statement:
"These investments expand our portfolio with two first mortgage loans secured by retail and hospitality assets in established markets. Town Center Plaza is anchored by nationally recognized tenants within the well-trafficked Coachella Valley corridor, and the SpringHill Suites is a newly constructed, Marriott-branded hotel located in a growing Scottsdale submarket supported by stable lodging demand. In each case, we are lending alongside experienced sponsors with meaningful capital invested in their projects, and the transactions are consistent with our underwriting standards."
About Seven Hills Realty Trust
Seven Hills Realty Trust (NASDAQ:SEVN) is a real estate investment trust that originates and invests in first mortgage loans secured by middle market 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 40 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. 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 the performance of certain properties, as well as SEVN's investment focus and continued growth. 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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Matt Murphy, Manager, Investor Relations
(617) 796-8253
www.sevnreit.com