Seven Hills Realty Trust Invests $37.0 Million in Two New First Mortgage Loans

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.

extension options financial

Options that let one party lengthen the life of a financial instrument—such as a loan, bond, warrant or option—beyond its original end date. They matter to investors because extending the term can change when money is paid, when shares might be issued, and how risky or valuable the investment is; think of it like choosing to renew a lease, which shifts timing and obligations and can alter expected returns.

NEWTON, Mass.--(BUSINESS WIRE)-- Seven Hills Realty Trust (Nasdaq: SEVN) today announced the closing of two new first mortgage loan investments totaling $37.0 million, as follows:

• A $19.5 million floating rate first mortgage loan to finance the acquisition of Town Center Plaza, a grocery-anchored retail property located in Palm Desert, California. The property is anchored by nationally recognized retailers and serves an established retail corridor within the Coachella Valley. The loan has a three-year initial term with two one-year extension options, subject to the borrower satisfying certain conditions. The transaction was brought to our manager, Tremont Realty Capital, by Palmer Capital on behalf of the sponsor, United Growth.
• A $17.5 million floating rate first mortgage loan to refinance SpringHill Suites Scottsdale, a 117-room extended stay hotel in Scottsdale, Arizona. Built in 2023, the Marriott-branded property is located within the Papago Plaza development in a submarket supported by strong business and leisure demand. The loan has a three-year initial term with two one-year extension options, subject to the borrower satisfying certain conditions. The transaction was brought to our manager, Tremont Realty Capital, by JLL on behalf of the sponsor, PEG Companies.

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

“These investments expand our portfolio with two first mortgage loans secured by retail and hospitality assets in established markets. Town Center Plaza is anchored by nationally recognized tenants within the well-trafficked Coachella Valley corridor, and the SpringHill Suites is a newly constructed, Marriott-branded hotel located in a growing Scottsdale submarket supported by stable lodging demand. In each case, we are lending alongside experienced sponsors with meaningful capital invested in their projects, and the transactions are consistent with our underwriting standards.”

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 performance of certain properties, as well as SEVN’s investment focus and continued 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.

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Matt Murphy, Manager, Investor Relations

(617) 796-8253

www.sevnreit.com

Source: Seven Hills Realty Trust