SNH sells stake in Boston towers for $261m
Senior Housing Properties Trust has formed a joint venture with a sovereign institutional investor to own 11 Fan Pier and 50 Northern Ave. in Boston.
The investor will contribute approximately $261 million for a 45 percent equity interest in the new venture, and SNH will own the remaining 55 percent equity interest. The investment amount is based on a property valuation of $1.2 billion, which includes $620 million of existing secured debt on the property.
The property included in the joint venture was acquired by SNH in May 2014 for $1.125 billion and consists of two 150story, class A LEED Gold life-science buildings with structured parking located in Boston’s Seaport District. The two buildings are 95 percent leased to Vertex Pharmaceuticals through 2028 and include 1.1 million rentable square feet of laboratory, corporate office and street-level retail space.
SNH will continue to control this property through its partnership in the joint venture.