Photo by Steve Adams |Banker & Tradesman Staff

Newton-based RMR Group refinanced its Boston Fan Pier property for $1 billion, a year after Vertex Pharmaceuticals renewed its lease for the 1.1 million square-foot office and lab complex.

A consortium of banks including Morgan Stanley, Bank of Montreal, Goldman Sachs and J.P. Morgan provided the new interest-only five-year mortgage at an fixed rate of just under 5.6 percent.

In July 2024, Vertex renewed its lease for 15 years through 2044 after scouting potential replacement locations in Boston.

In an announcement, RMR Group said it will use the proceeds to repay an existing $620 million mortgage that has a repayment date in 2026, fund leasing reserves and repatriate cash.

“This financing allows us to recapitalize the joint venture’s debt at a leverage level appropriate for a well leased, high quality asset, while capitalizing outstanding tenant inducements associated with the lease extension, and securing a competitive fixed interest rate,” RMR Group CEO Adam Portnoy said in a statement.

The property at 50 Northern Ave. and 11 Fan Pier Boulevard is owned by a joint venture including private institutional investors and Diversified Healthcare Trust.

The Fallon Co of Boston developed the 1.1 million square-foot headquarters on a build-to-suit basis for Vertex, which relocated from Cambridge in 2014.