Press Releases

Tremont Realty Capital Closes Two First Mortgage Loans Totaling $98 Million and Receives $68 Million of Proceeds from Loan Repayments

NEWTON, Mass.--(BUSINESS WIRE)-- Seven Hills Realty Trust (Nasdaq: SEVN) today provided a business update, including announcing the closing of two new first mortgage loan investments totaling $98.0 million secured by multifamily and mixed-use properties, the repayment of two loans resulting in proceeds of $68.0 million, and the reduction in its office exposure to approximately 13% of its portfolio as of September 30, 2026 based on outstanding principal balances.

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

“The closing of the two new investments along with the recent loan repayments highlights the strength of our origination platform and active portfolio management strategy. We believe these investments are secured by high-quality assets with experienced sponsors and are strong additions to our diversified portfolio.

The repayment of our Dallas office loan resulted in a modest discount to the outstanding balance, but we believe it represents a positive outcome for SEVN, in that it further reduces our office exposure, while increasing our capacity to deploy capital into investments where we see potential for better risk-adjusted returns.

We also expect additional capital recycling activity in the near term, including the anticipated repayment of our Carlsbad, California office loan during the fourth quarter. These recent and expected developments position us to advance our objectives of generating sustainable dividend coverage and delivering value for our shareholders.”

The new loan investments include:

A $68.0 million floating rate first mortgage loan to refinance Populus Waterside, a Class A, 344-unit multifamily property located in Chattanooga, Tennessee. Completed in 2024, the property is located in a submarket with convenient access to Interstate 75 and the Hamilton Place retail corridor. The loan has a three-year initial term with two one-year extension options. The transaction was brought to SEVN's manager, Tremont Realty Capital, by Cushman & Wakefield on behalf of the sponsors, Novare Group and Batson-Cook Development Company.
A $30.0 million floating rate first mortgage loan to refinance a 246,000 square foot mixed-use retail and self-storage property located in Charlotte, North Carolina. The property includes approximately 202,000 square feet of retail space and 44,000 square feet of self-storage space. The loan has a three-year initial term with two one-year extension options. The transaction was brought to Tremont Realty Capital by JLL.

The loan repayments include:

A loan secured by an office property in Dallas, Texas that was repaid at approximately 97% of its $44.2 million outstanding balance, reflecting a $1.5 million discount, which was significantly below the $6.3 million CECL reserve allocated to this loan as of June 30, 2026. Following the repayment, SEVN's office exposure decreased from 19% as of June 30, 2026 to approximately 13% of its portfolio as of September 30, 2026 based on outstanding principal balances. The loan’s net interest margin was approximately 80 basis points below the weighted average net interest margin of new SEVN loans closed year to date. SEVN had limited financing on this loan relative to its other investments. As a result, the repayment increases SEVN’s lending capacity by approximately $46 million and enhances its ability to redeploy capital into investments with higher earnings potential.
A $25.3 million loan secured by a self-storage property in Fayetteville, Georgia that was repaid in full. The loan carried a net interest margin approximately 100 basis points below the weighted average net interest margin of new SEVN loans closed year to date.

Since the beginning of the third quarter, SEVN has closed $122.3 million of first mortgage loan investments, including the two loans announced today. SEVN continues to advance its deployment strategy with three loans in diligence totaling $121.7 million that are expected to close during the fourth quarter of 2026, subject to closing conditions.

SEVN will discuss these transactions in further detail during its third quarter 2026 earnings conference call scheduled for Wednesday, October 28, 2026 at 11:00 a.m. Eastern Time.

About Seven Hills Realty Trust

Seven Hills Realty Trust (Nasdaq: SEVN) is a real estate investment trust, or REIT, 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 SEVN’s investment focus, ability to complete additional loan investments in the future and ability to generate attractive risk adjusted returns for shareholders. 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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