Westlake Village-based LTC Properties Inc., an actual property funding belief that invests in senior housing and well being care properties, has accomplished modifications of its 35-property Brookdale Senior Dwelling Inc. portfolio – a sequence of transactions which have resulted within the web proceeds of $23 million and an anticipated web achieve of $17 million associated to property gross sales.
The association spanned eight states and totaled practically 1,500 items.
“LTC dedicated to efficiently place the earlier Brookdale portfolio by re-leasing some properties and promoting others,” Wendy Simpson, chief government and chairman of LTC Properties, stated in an announcement. “We’re happy to have reached a positive consequence.”
Of the 35 properties impacted, 17 communities throughout 4 states – Colorado, Texas, Kansas and Ohio – have been re-leased to Brookdale totaling 738 items. The brand new grasp lease, which started firstly of the month, will final six years with an preliminary annual hire of $9.3 million.
5 communities in Oklahoma, with a complete of 184 items, have been transferred again in November and at the moment are being operated by Oxford Senior Dwelling, an present LTC operator. Oxford Senior Dwelling agreed to a three-year time period with the potential for one four-year extension at an preliminary annual hire of $960,000.
Additionally firstly of the month, 5 communities in North Carolina spanning 210 items have been transferred and at the moment are being operated by Navion Senior Options, a brand new operator to LTC. Navion signed a six-year lease at an preliminary annual hire of $3.3 million.
Lastly, eight communities throughout three states, together with 4 in Florida, three in South Carolina and one in Oklahoma, with a complete of 341 items, have been offered for $28 million. From these gross sales alone, LTC obtained $23.2 million in web transaction prices and vendor financing proceeds and expects to see a web achieve of $17 million.
“Importantly, hire from the earlier portfolio has been totally changed, and we’ve generated gross sales proceeds to pay down a portion of our debt, which was incurred to pre-fund accretive investments earlier this yr,” Simpson stated.
Based on LTC, the acknowledged transactions cut back LTC’s income from Brookdale by 40%.
LTC specializes within the funding of senior housing and well being care properties primarily via sale-leasebacks, mortgage financing, joint-ventures and structured finance options together with most well-liked fairness and mezzanine lending.
The corporate’s present funding portfolio consists of 200 properties in 27 states with 30 working companions. Primarily based on its gross actual property investments, LTC’s funding portfolio is comprised of roughly 50% housing for seniors and 50% expert nursing properties.