March 28, 2017
Senior Housing Properties Trust formed a joint venture with an undisclosed institutional investor for a 45% stake in 11 Fan Pier and 40 Northern Avenue in Boston, MA. The value of the properties, which are part of Boston’s Seaport District, is $1.2 billion, and SNH and its silent partner will kick in approximately $261 million for the ownership stake.
SNH acquired the two buildings in May 2014 for 1.13 billion. The buildings are 95% leased to Vertex Pharmaceuticals through 2028. SNH will continue to control the property. This transaction highlights the increased value of these two well located, well leased buildings since we acquired them less than three years ago,” said SNH president and CEO David Hegarty. “This transaction also reduces our investment portfolio’s concentration in this property and reduces our overall leverage.”
Eastdil Secured acted as SNH’s advisor, and Sullivan & Worcester LLP provided legal counsel to SNH in this transaction.
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