RMR Lines Up $272M Mortgage Financing for Cedars-Sinai MOBs

The RMR Group Inc. has facilitated a $272.1-million interest-only mortgage financing secured by 8631 and 8635 W. Third St., two medical office buildings anchored by Cedars-Sinai Medical Center in Los Angeles. Morgan Stanley and BNP Paribas provided the financing.

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.

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, an RMR client, owns a 20% equity interest. Hogan Lovells Cadwalader US LLP acted as counsel to the lenders and Sullivan & Worcester LLP acted as counsel to the borrower.

Photo courtesy of ACCO Engineering Services.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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