Seven Hills Realty Trust closes $ 42.5 million bridge loan to refinance retail mall in West Bloomfield, MI
NEWTON, Mass., December 21, 2021– (BUSINESS WIRE) – Seven Hills Realty Trust (Nasdaq: SEVN) today announced the closing of a $ 42.5 million variable rate bridge loan to refinance and reposition Gateway Center, a store 272,000 square foot retail store anchored in a grocery store located at 7230-7380 Orchard Lake Road in West Bloomfield, Michigan.
An initial advance of $ 37.4 million was funded at closing with future advances of approximately $ 5.1 million available for leasehold improvements and capital expenditures. The loan is structured with an initial term of two years with an option of one year extension, subject to the borrower meeting certain conditions. SEVN Director Tremont Realty Capital was introduced to the transaction by Q10 | Lutz Financial Services, who advised the sponsor, Commercial Financial Management.
Tom Lorenzini, President of SEVN, made the following statement:
“We continue to build momentum in our commercial mortgage business with the recent closing of a $ 42.5 million loan to refinance a shopping center located in a densely populated suburb of Detroit and anchored in Whole Foods and Walgreens. Our investment pipeline remains strong and we see attractive opportunities to continue to increase the volume of loan origination and further expand our portfolio as we enter 2022. ”
Seven Hills Realty Trust (Nasdaq: SEVN) is a real estate finance company that creates and invests in senior mortgages secured by middle and bridging commercial real estate. SEVN is managed by Tremont Realty Capital, a subsidiary of The RMR Group Inc. (Nasdaq: RMR), one of America’s leading alternative asset management firms with over $ 32 billion in assets under management and 35 years institutional experience in buying, selling, financing and operating commercial real estate. For more information on SEVN, please visit www.sevnreit.com.
Tremont Realty Capital is a direct lender that creates and invests in secured middle market loans and bridging commercial real estate. For more information on Tremont Realty Capital, please visit www.tremontcapital.com.
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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. Additionally, whenever SEVN uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “will”, “can” and negatives or derivatives of these or similar expressions, SEVN makes forward-looking statements. These forward-looking statements are based on SEVN’s current intention, beliefs or expectations, but forward-looking statements are not guaranteed and may not occur. Actual results may differ materially from those contained or implied by SEVN’s forward-looking statements due to various factors. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond SEVN’s control. For example:
This press release refers to recent closed loans and future plans to further increase the loan origination volume and continue to expand SEVN, which may imply that SEVN will close additional loans and its business will continue to grow. improve accordingly. However, SEVN’s business and its ability to execute loans and achieve its investment objective are subject to various risks, including the competitive nature of the industry in which it operates, as well as other factors, many of which are beyond the control of its control, such as the covid19 pandemic. These risks and other factors may prevent SEVN from successfully entering into additional loans and achieving its investment objective. In addition, once SEVN invests or commits its remaining capital, its ability to continue to grow and finance loans will be subject to its ability to raise profitable additional capital or redeploy the proceeds from repayments of its loan investments.
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A statutory Maryland trust with transferable beneficial interest shares listed on the Nasdaq.
No shareholder, trustee or officer is personally liable for any act or obligation of the Trust.
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Kevin Barry, Director, Investor Relations