The RMR Group Announces $272 Million Refinancing of Cedars-Sinai Medical Office Portfolio in Los Angeles

The joint venture repaid approximately $267 million of mortgage debt that was scheduled to mature in February 2027.

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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.

WARNING REGARDING FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements that are within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws that are subject to risks and uncertainties. These statements may include words such as “believe,” “anticipate,” “could,” “driving,” “estimate,” “expect,” “goal,” “intend,” “may,” “plan,” “project,” “seek,” “should,” “will,” “would,” “considering,” “opportunities,” “positioned,” “potential” and negative or derivatives of these or similar expressions. Forward-looking statements include, without limitation, statements regarding our business strategy and related benefits, our performance, plans, expectations and objectives and our ability to capitalize on additional growth opportunities. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those currently anticipated due to a number of risks and uncertainties. These factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included in RMR’s periodic filings. The information contained in RMR’s filings with the Securities and Exchange Commission (“SEC”), including under the caption “Risk Factors” in its periodic reports, or incorporated therein, identifies important factors that could cause differences from the forward-looking statements in this press release. RMR’s filings with the SEC are available on its website and at www.sec.gov. You should not place undue reliance on forward-looking statements. Except as required by law, RMR undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261009730563/en/

Bryan Maher, Senior Vice President
(617) 796-8230

Source: The RMR Group Inc.

Key Terms

interest-only financial

A loan or payment plan where the borrower pays only the interest for a set period while the original loan amount (the principal) stays unchanged; after that period payments typically rise to cover principal or a lump-sum principal payment is due. For investors this matters because interest-only structures change cash flows and risk: they can boost short-term income but increase the chance of payment shock or default later, similar to renting a car without paying down the purchase cost until the final bill arrives.

term sofr financial

Term SOFR is a benchmark interest rate that reflects the cost of borrowing money over a specific period, based on actual transactions in the financial markets. It is used by lenders and borrowers to set the interest rates on loans and financial contracts, helping to ensure rates are fair and transparent. For investors, understanding term SOFR helps gauge borrowing costs and the overall direction of interest rates in the economy.

basis points financial

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.