RMR Group secures $1 billion mortgage for Vertex Pharmaceuticals HQ

Published 07/08/2025, 21:30
RMR Group secures $1 billion mortgage for Vertex Pharmaceuticals HQ

NEWTON, Mass. - The RMR Group (NASDAQ:RMR) announced Thursday it has facilitated a $1 billion five-year fixed-rate mortgage financing for Vertex Pharmaceuticals’ headquarters in Boston’s Seaport district.

The financing, which carries a weighted-average interest rate of 5.5957%, is secured by Vertex’s 1.1 million square foot headquarters at 50 Northern Avenue and 11 Fan Pier Boulevard. The funds will primarily be used to repay an existing $620 million mortgage due in 2026, fund leasing reserves, and repatriate cash.

The announcement follows a recent lease extension with Vertex Pharmaceuticals that extends the occupancy term to June 2044, adding approximately 15 years to the previous agreement.

"This financing allows us to recapitalize the joint venture’s debt at a leverage level appropriate for a well leased, high quality asset," said Adam Portnoy, President and Chief Executive Officer of RMR, in a press release statement.

The properties are owned by a joint venture for which RMR provides asset and property management services. The financing was provided by Morgan Stanley Bank, N.A., Bank of Montreal, Goldman Sachs and J.P. Morgan.

Diversified Healthcare Trust (NASDAQ:DHC), an RMR client, owns a 10% equity interest in the joint venture, with the remaining ownership held by private institutional investors. DHC, currently valued at $819.6 million, has demonstrated strong momentum with a 29% return over the past six months. According to InvestingPro analysis, the company trades at an attractive Price/Book ratio of 0.44 and has maintained dividend payments for 27 consecutive years.

The RMR Group manages approximately $40 billion in assets and operates with nearly 900 real estate professionals across more than 30 offices nationwide. For deeper insights into DHC’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US equities with expert analysis and actionable intelligence.

In other recent news, Diversified Healthcare Trust (DHC) reported its Q2 2025 earnings, showing a mixed financial outcome. The company announced an earnings per share (EPS) of -$0.38, which did not meet the forecasted -$0.24, resulting in a 58.33% negative surprise. On a more positive note, DHC’s revenue reached $382.7 million, slightly exceeding the expected $380.79 million. These recent developments highlight the company’s ongoing financial challenges and achievements. While the earnings per share fell short, the revenue figures offer a slight upside for investors. The company’s financial results continue to draw attention, reflecting both areas of concern and promise.

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