DHC Sells 10% Equity Interest in Life Science Complex for $108M
The firm has sold the additional equity interest in a 1.1-million-square-foot Boston property to an existing joint-venture partner.
BOSTON, MA – Diversified Healthcare Trust has sold an additional 10% equity interest in a life science complex in Boston’s Seaport district to an existing joint-venture partner for $108 million.
The class A, two-building complex features 1.1 million rentable square feet of lab, office and street-level retail space. Located at 11 Fan Pier and 50 Northern Ave., the two 15-story properties are LEED Gold certified and are 95% leased to Vertex Pharmaceuticals Inc.
The purchase partner now owns a 45% interest in the joint-venture. DHC owns 10% equity interest and another partner owns the remaining 45% equity interest.
The purchase price for the 10% equity interest is based on a $1.7 billion property valuation, less the $620 million of existing secured debt on the property.
DHC plans to use the transaction’s proceeds to fund capital expenditures, reduce outstanding indebtedness and for other general business purposes.
DHC originally acquired the life science complex in May 2014 for $1.1 billion. The REIT now owns more than 100 life science and medical office properties, totaling nine million square feet.
DHC and the joint-venture are managed by the RMR Group.