RMR Lands $1B Refi for Vertex HQ in Boston Seaport

The RMR Group locked in a $1 billion refinancing on Vertex Pharmaceuticals’ Boston Seaport headquarters, a deal that shores up the property’s capital stack for the next half-decade.

The Newton, Massachusetts-based firm said it arranged the five-year, interest-only, fixed-rate loan on behalf of a managed joint venture that owns the 1.1 million-square-foot, two-building complex at 50 Northern Avenue and 11 Fan Pier Boulevard. The mortgage carries a weighted average interest rate of 5.6 percent and is secured by the twin buildings on the waterfront, according to a company statement.

Proceeds will go toward paying off a $620 million mortgage set to mature in 2026, funding leasing reserves and repatriating cash to ownership. The refinancing comes on the heels of Vertex inking a roughly 15-year lease extension, pushing its commitment to the property to June 2044; the lease was initially set to expire in 2028.

“This financing allows us to recapitalize the joint venture’s debt at a leverage level appropriate for a well leased, high quality asset,” RMR CEO Adam Portnoy said in a statement, adding that the structure also accommodates tenant inducements tied to the lease extension.

The complex is owned by a joint venture primarily held by private institutional investors. Diversified Healthcare Trust, another RMR-managed entity, holds a 10 percent stake. RMR provides both asset and property management for the portfolio.

Vertex is only growing in the Seaport, too. The pharma company opened a 269,000-square-foot research and manufacturing building at 316-318 Northern Avenue in 2022, according to the Boston Business Journal. It’s also working on another 344,000-square-foot building on Northern Avenue, which would be its fourth in the area.

Vertex was an early adopter of the Seaport, relocating from Cambridge in 2011. Since then, other major companies have followed suit and found homes in the district, including Fidelity Investments, Amazon, MassMutual, Boston Consulting Group and PwC.

Founded in 1986, RMR holds approximately $40 billion in assets under management.