The RMR Group Announces $272 Million Refinancing of Cedars-Sinai Medical Office Portfolio in Los Angeles
NEWTON, Mass.–(BUSINESS WIRE)–The RMR Group Inc. (Nasdaq: RMR) today announced on behalf of its managed joint venture that it has facilitated a $272.1 million interest-only mortgage financing secured by 8631 and 8635 West Third Street in Los Angeles, California. The loan has a two-year initial term with three one-year extension options and bears interest at one-month Term SOFR plus 180 basis points. Proceeds from the financing were used to repay approximately $267 million of existing mortgage debt scheduled to mature in February 2027 and to fund closing costs.
The collateral consists of two 11-story medical office buildings totaling approximately 330,000 square feet, together with two structured parking garages, located on the campus of Cedars-Sinai Medical Center and connected to the hospital by skybridge. Cedars-Sinai and its affiliates are the portfolio’s anchor tenants, occupying approximately 60% of the portfolio’s total rentable square feet.
Adam Portnoy, President and Chief Executive Officer of RMR, made the following statement:
“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.”
The portfolio is owned by a joint venture for which RMR provides asset and property management services. The primary owners of the venture are private institutional investors, and Diversified Healthcare Trust (Nasdaq: DHC), an RMR client, owns a 20% equity interest. Morgan Stanley and BNP Paribas provided the financing. Hogan Lovells Cadwalader US LLP acted as counsel to the lenders and Sullivan & Worcester LLP acted as counsel to the borrower.
About The RMR Group
The RMR Group is a leading U.S. alternative asset management company, unique for its focus on commercial real estate (CRE), residential real estate and related businesses. RMR’s vertical integration is supported by over 800 real estate professionals in more than 30 offices nationwide who manage over $37 billion in assets under management and leverage 40 years of institutional experience in buying, selling, financing and operating CRE. RMR benefits from a scalable platform, a deep and experienced management team and a diversity of direct real estate strategies across its clients. RMR is headquartered in Newton, MA and was founded in 1986. For more information, please visit www.rmrgroup.com.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20261009730563/en/
Bryan Maher, Senior Vice President
(617) 796-8230
KEYWORDS: United States North America California Massachusetts
INDUSTRY KEYWORDS: Professional Services Residential Building & Real Estate Commercial Building & Real Estate Finance Construction & Property Asset Management
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