A 13-property senior living portfolio is changing hands, thanks in part to $60 million in financing from LTC Properties (NYSE: LTC).
“On the heels of our recent announcement of $46 million in investments through a variety of loan vehicles, this structured finance investment is another example of our ability to provide operators with the financing they need, when they need it,” LTC Chairman and CEO Wendy Simpson said, in a press release.
The portfolio involves communities in North Carolina and South Carolina, which will be operated by an existing LTC partner. The real estate investment trust (REIT) did not disclose the identity of the operator.
LTC is providing a $52.5 million unitranche loan for the acquisition. The loan includes additional commitments of $6.1 million for capital improvements and $650,000 for working capital.
The loan has a 4-year maturation and bears interest at 7.25%, with an internal rate of return (IRR) of 8%.
LTC’s portfolio includes more than 175 properties, including more than 100 assisted living communities, across the United States.
The REIT lately has focused on structured financing deals, in part because “pricing for some properties does not accurately reflect what we believe is their actual value,” LTC Co-President and Chief Investment Officer Clint Malin said on the company’s Q3 2021 earnings call.
However, following the resolution of some operator challenges and transitions, LTC is primed for external growth over the next 12 months, with a near-term pipeline valued at more than $100 million, executives said on the earnings call.
“Our pipeline remains healthy, with a nice mix of opportunities, including for private pay and skilled nursing and with regional operating partners, both new to LTC and existing,” Malin said.
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