Seven Hills Realty Trust closes $ 53.3 million in new First Mortgage Bridge loans

NEWTON, Mass .– (BUSINESS WIRE) –Seven Hills Realty Trust (Nasdaq: SEVN) announced today the closing of the first two bridge mortgages with a total capital of $ 53.3 million with a total initial down payment of $ 49.2 million.

SEVN has closed a first $ 37.3 million floating-bridge mortgage to finance the acquisition of Aspen Heights, a 958-bed dormitory in Starkville, Mississippi, near State University campus. The loan is structured with an initial three-year term and two one-year extension options, provided the borrower meets certain conditions. Director of SEVN, Tremont Realty Capitalwas entered into the transaction by Jones Lang LaSalle Incorporatedwhich informed the sponsor, Centurion Property Group.

SEVN also closed a first $ 16.0 million floating deck mortgage loan to refinance Bed Bath & Beyond Plaza, an 86,000-square-foot mall located in Delray Beach, Florida. The loan is structured with an initial duration of two years and two one-year extension options, provided the borrower meets certain conditions. Tremont Realty Capital was listed on Concord Summit Capitalwhich advised sponsor Berta Management of Florida.

Tom LorenziniPresident of SEVN, made the following statement:

Our recent investment activity continues to demonstrate our ability to lend with high quality assurance, a variety of assets, leveraging our strong network of industry relationships. The Aspen Heights loan was given to a recurring sponsor to finance the acquisition of a student housing community located less than a mile from the campus of Mississippi State University. We also added a new sponsor to our portfolio by refinancing a mall in the densely populated Delray Beach sub-market, which anchored Bed Bath & Beyond, CVS and a future Starbucks. We are encouraged by the number of investment opportunities we see from new and existing relationships that match our investment goal of balancing capital retention with attractive returns adjusted to risk.

About the Seven Hills Realty Trust

The Seven Hills Realty Trust (Nasdaq: SEVN) is a real estate financing company that creates and invests in first mortgages secured by the middle market and transitional commercial real estate. SEVN is managed by Tremont Realty Capitalits subsidiary The RMR Group (Nasdaq: RMR), a leading US alternative asset management company with more than $ 33 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, visit www.sevnreit.com.

WARNING ABOUT FUTURE STATEMENTS

This press release contains statements that are future statements within the meaning of the 1995 Private Securities Litigation Reform Act and other securities laws. Also, whenever SEVN uses words such as “believe”, “expect”, “predict”, “intend”, “plan”, “estimate”, “will”, “may” and negative or derivatives of these or similar expressions, SEVN does forward-looking statements. These future statements are based on SEVN’s present intentions, beliefs or expectations, but future statements are not guaranteed to be made and may not be made. Actual results may differ substantially from those contained in or implied by future SEVN statements as a result of a number of factors. Future statements contain known and unknown risks, uncertainties and other factors, some of which are beyond the control of SEVN. For example:

  • This press release refers to recent closed loans and future plans to achieve its investment objective, including the strong flow of investment opportunities from new and existing relationships that match its investment objective, which may mean that SEVN will close additional loans, that it will achieve its target investment and that its operations will continue to improve as a result. However, SEVN’s activity and ability to lend and achieve its investment objective are subject to a number of risks, including the competitive nature of the industry in which it operates, as well as other factors, many of which are out of control, such as the current Pandemic covid19. These risks and other factors may prevent SEVN from successfully closing additional loans, carrying out its business plans and achieving its investment objective. In addition, once SEVN invests or freezes its remaining capital, its ability to continue to grow and finance loans will depend on its ability to raise additional cost-effective capital or redistribute the proceeds of its loan repayments. In addition, any increase in its loan portfolio may not benefit SEVN if, for example, SEVN does not realize the returns it expects from this growth.

The information contained in the SEVN files on the SEC or the SEC, including “Risk Factors” in SEVN periodic reports referred to or implied by Future SEVN Statements. SEVN SEC files are available on the SEC website at www.sec.gov.

You should not unduly rely on future statements.

Apart from the requirements of the law, SEVN does not intend to update or change any future statements as a result of new information, future events or otherwise.

A Maryland Real Estate Investment Trust with transferable interest-bearing shares listed on the Nasdaq.

No shareholder, manager or official is personally liable for any act or obligation of the Trust.

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