The RMR Group announced that it facilitated a $272.1 million interest-only mortgage financing on behalf of a managed joint venture for a medical office portfolio located on the Cedars-Sinai Medical Center campus in Los Angeles.
The financing is secured by 8631 and 8635 West Third Street, two 11-story medical office buildings totaling approximately 330,000 square feet, along with two structured parking garages.
The buildings are connected to Cedars-Sinai Medical Center by skybridge.
Cedars-Sinai and its affiliates serve as the portfolio’s anchor tenants and occupy approximately 60% of the total rentable square footage.
The new loan has an initial two-year term with three one-year extension options.
It carries an interest rate of one-month Term SOFR plus 180 basis points.
Proceeds were used to repay approximately $267 million of existing mortgage debt that was scheduled to mature in February 2027 and to cover closing costs.
The refinancing provides the joint venture with additional term flexibility while maintaining financing for a strategically located healthcare real estate asset.
Morgan Stanley and BNP Paribas provided the financing.
Hogan Lovells Cadwalader US LLP served as counsel to the lenders, while Sullivan & Worcester LLP represented the borrower.
The portfolio is owned by a joint venture for which RMR provides asset and property management services.
The venture is primarily owned by private institutional investors.
Diversified Healthcare Trust, an RMR client, owns a 20% equity interest in the joint venture.
RMR manages more than $37 billion in assets under management through a platform supported by more than 800 real estate professionals across more than 30 offices nationwide.
The firm focuses on commercial real estate, residential real estate, and related businesses.
KEY QUOTES:
“This refinancing reflects the quality of this medical office portfolio, which is located on the campus of one of the nation’s leading healthcare institutions. By refinancing its upcoming maturity with a new loan that provides term extension flexibility, the joint venture is well positioned to continue benefiting from the portfolio’s strong anchor tenancy, strategic location and attractive long-term fundamentals. The successful execution of this transaction underscores the value of RMR’s integrated real estate platform and our ability to deliver capital solutions that support our clients’ investment objectives.”
Adam Portnoy, President and Chief Executive Officer of The RMR Group
