WESTLAKE VILLAGE, Calif. — LTC Properties Inc. (NYSE: LTC), a Westlake Village-based REIT, has re-leased 10 of the 35 properties in its Brookdale Senior Living portfolio to Brookdale under a new master lease. This new master lease includes six properties in Colorado and four in Kansas.
The six-year master lease will commence on Jan. 1, 2024. Rent in the first year is set at $8 million, escalating by approximately 2 percent annually. The lease includes a purchase option that can be exercised in 2029.
LTC also agreed to fund $4.5 million for capital expenditures for the first two years of the lease, at an initial interest rate of 8 percent, escalating by approximately 2 percent annually thereafter.
“We have now leased nearly half of the properties we targeted to lease and are working toward transactions on the remaining properties including selling certain properties. Additionally, consistent with our strategy, this new agreement meaningfully reduces our operator concentration,” says Wendy Simpson, LTC’s chairman and CEO. “Brookdale has been a great partner through the years, and we are happy to have reached an outcome that benefits all parties.”
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