Seven Hills Realty Trust Closes Two First Mortgage Loans Totaling $52.3 Million and Receives Office Loan Repayment

Key Terms

first mortgage loan financial

A first mortgage loan is the primary loan secured by a property, meaning the lender has the first claim on that property if the borrower fails to repay. Think of it as the lead lien in a queue: it gets paid before any other debts tied to the same property. Investors care because first mortgages typically carry lower risk and stronger recovery prospects, influencing loan values, interest rates and the stability of mortgage-backed investments.

floating rate financial

An interest rate on a loan, bond or deposit that is not fixed but resets at regular intervals based on a reference market rate plus a set margin, so the payments rise or fall as overall interest rates change. For investors, floating-rate instruments act like a weather vane: they can protect income when rates climb by increasing payouts, but they introduce unpredictable cash flow and price movement when rates fall or shift, affecting expected yield and valuation.

refinance financial

Refinance means replacing an existing loan or bond with a new one under different terms, much like trading an old mortgage for a new one with a lower monthly payment or longer timeline. For investors, refinancing matters because it changes a company’s interest costs, cash flow and risk profile — which can improve profits and credit standing or, if done poorly, increase leverage and pressure on future returns.

portfolio financial

A portfolio is a collection of investments owned by an individual or organization, such as stocks, bonds, or other assets. It is like a personal toolkit that contains different types of investments to help manage risk and achieve financial goals. The way investments are combined in a portfolio can influence how much money is made or lost over time.

risk-adjusted returns financial

A way of measuring investment performance that adjusts raw returns to account for how much risk was taken to earn them. Think of it like comparing two cars by not just top speed but also fuel efficiency: a higher ‘speed per gallon’ is more impressive. For investors it shows whether higher profits came from smart choices or simply from taking bigger chances, helping compare funds and make safer portfolio decisions.

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NEWTON, Mass.--(BUSINESS WIRE)-- Seven Hills Realty Trust (Nasdaq: SEVN) today announced the closing of two new first mortgage loan investments totaling approximately $52.3 million and the repayment of a $26.5 million loan secured by an office property in suburban Chicago.

The new loan investments include:

• A $36.3 million floating rate first mortgage loan to refinance Enclave at Roswell, a 236-unit multifamily property located in Roswell, Georgia. The property is located in a prominent submarket of metropolitan Atlanta with convenient access to major employment and retail corridors. The loan has a three-year initial term with two one-year extension options, subject to customary conditions. The transaction was brought to SEVN’s manager, Tremont Realty Capital, by JLL on behalf of the sponsor.
• A $16.0 million floating rate first mortgage loan to refinance Snapbox Self Storage Philadelphia, a 104,000 square foot self-storage facility with 1,068 units located in northeast Philadelphia, Pennsylvania. The property was originally developed in 2021 and is located within Liberty Plaza, a retail center with strong population density and convenient access to major regional transportation corridors. The loan has a three-year initial term with two one-year extension options, subject to customary conditions. The transaction was brought to Tremont Realty Capital by JLL on behalf of the sponsor, Self Storage Capital Partners.

In addition, SEVN announced the full repayment of a $26.5 million loan secured by an office property in Downers Grove, Illinois. The loan, which was originated in September 2020 and was scheduled to mature in May 2026, was repaid through a borrower refinancing. This repayment reduces SEVN’s office exposure to approximately 20% of its total current portfolio.

Tom Lorenzini, President and Chief Investment Officer of SEVN, made the following statement:

“Today we announced two strong additions to our portfolio, executing loans on a well-located multifamily property in metropolitan Atlanta and a self-storage facility in a resilient Philadelphia submarket. Both properties benefit from strong occupancy, attractive supply-demand dynamics, and experienced sponsors with significant equity investments.

Furthermore, the full repayment of the Downers Grove office loan demonstrates our continued progress in reducing SEVN’s exposure to the office sector. The return of capital through this refinancing allows us to pursue new investments within our pipeline, where we continue to find opportunities to generate attractive risk-adjusted returns for our shareholders. We expect additional loan closings in the second quarter, including several new investments currently in diligence, and look forward to providing updates.”

About Seven Hills Realty Trust

Seven Hills Realty Trust (Nasdaq: SEVN) is a real estate investment trust that originates and invests in first mortgage loans secured by middle market transitional commercial real estate. SEVN is managed by Tremont Realty Capital, an affiliate of The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $37 billion in assets under management and 40 years of institutional experience in buying, selling, financing and operating commercial real estate. For more information about SEVN, please visit www.sevnreit.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. These statements may include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “will,” “may” and negatives or derivatives of these or similar expressions. These forward-looking statements include, among others, statements about the quality of SEVN’s investments and performance of underlying properties, as well as SEVN’s potential future growth. Forward-looking statements reflect SEVN’s current expectations, are based on judgments and assumptions, are inherently uncertain and are subject to risks, uncertainties and other factors, which could cause SEVN’s actual results, performance or achievements to differ materially from expected future results, performance or achievements expressed or implied in those forward-looking statements. Some of the risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements include, but are not limited to, the following: the ability of SEVN to make additional investments; the success of SEVN’s investments; SEVN’s available liquidity, access to capital and cost of capital; and various other matters. These risks, uncertainties and other factors are not exhaustive and should be read in conjunction with other cautionary statements that are included in SEVN’s periodic filings with the Securities and Exchange Commission, or SEC. The information contained in SEVN’s filings with the SEC, including under the caption “Risk Factors” in its periodic reports, or incorporated therein, identifies 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 Real Estate Investment 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260601111509/en/

Matt Murphy, Manager, Investor Relations
(617) 796-8253
www.sevnreit.com

Source: Seven Hills Realty Trust