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Diversified Healthcare Trust Enters $703M JV for 10-Property Office Portfolio
Newton, MA-based Diversified Healthcare Trust has entered into a $703-million joint venture for 10 properties in its office portfolio segment with two global institutional investors. The investors acquired a 41% and 39% equity interest in the joint venture for an investment of approximately $100.7 million and $95.8 million, respectively, and DHC retained a 20% equity interest in the joint venture.
The joint venture incurred approximately $456.3 million of secured debt on the properties. The results of operations of the joint venture will be deconsolidated and DHC’s remaining 20% equity interest will be accounted for using the equity method.
The portfolio’s 10 properties contain an aggregate of approximately 1.1 million square feet and are located in five states. Two properties are in MA: 330 Baker Avenue in Concord and 30 New Crossing Road in Reading.
The portfolio is being sold at approximately $657 per square foot, or a 4.98% capitalization rate based on full year 2021 actual cash NOI.
Photo: Reading, MA
- ◦Financing
