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NEWTON, Mass., December 21, 2021--(BUSINESS WIRE)--Seven Hills Realty Trust (Nasdaq:SEVN) today announced the closing of a $42.5 million first mortgage floating-rate bridge loan to refinance and reposition The Gateway Center, a 272,000 square foot, grocery-anchored retail shopping center 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 tenant improvements and capital expenditures. The loan is structured with a two-year initial term with a one-year extension option, subject to the borrower meeting certain requirements. SEVN’s manager, Tremont Realty Capital, was introduced to the transaction by Q10|Lutz Financial Services, which advised the sponsor, Commercial Financial Management.
Tom Lorenzini, President of SEVN, made the following statement:
"We continue our momentum on our commercial mortgage lending activity 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 by Whole Foods and Walgreens stores. Our investment pipeline remains strong, and we see attractive opportunities to continue to increase loan origination volume and further expand our portfolio as we enter 2022."
Seven Hills Realty Trust (Nasdaq:SEVN) is a real estate finance company that originates and invests in first mortgage loans secured by middle market and transitional commercial real estate. SEVN is managed by Tremont Realty Capital, an affiliate of The RMR Group Inc. (Nasdaq:RMR), a leading U.S. alternative asset management company with over $32 billion in assets under management and 35 years of institutional experience in buying, selling, financing and operating commercial real estate. For more information about SEVN, please visit www.sevnreit.com.
Tremont Realty Capital is a direct lender that originates and invests in loans secured by middle market and transitional commercial real estate. For more information about Tremont Realty Capital please visit www.tremontcapital.com.
WARNING CONCERNING FORWARD-LOOKING STATEMENTS
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. Also, whenever SEVN uses words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "will," "may" and negatives or derivatives of these or similar expressions, SEVN is making forward-looking statements. These forward-looking statements are based upon SEVN’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by SEVN’s forward-looking statements as a result of 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 references recent loans closed and future plans to further increase loan origination volume and continue to expand SEVN, which may imply that SEVN will close additional loans and that its business will continue to improve as a result. However, SEVN’s business and ability to execute loans and realize 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 outside its control, such as the current COVID-19 pandemic. These risks and other factors may prevent SEVN from successfully closing additional loans and realizing its investment objective. Further, once SEVN invests or commits its remaining capital, its ability to continue to grow and fund loans will be subject to its ability to obtain additional cost-effective capital or its redeploying proceeds from repayments of its loan investments.
The information contained in SEVN’s filings with the Securities and Exchange Commission, or SEC, including under "Risk Factors" in SEVN’s periodic reports or incorporated therein, identifies other important factors that could cause SEVN’s actual results to differ materially from those stated in or implied by SEVN’s forward-looking statements. SEVN’s filings with the SEC are available on the SEC’s website at www.sec.gov.
You should not place undue reliance upon forward-looking statements.
Except as required by law, SEVN does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.
A Maryland Statutory Trust with transferable shares of beneficial interest 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