COLUMBUS and CLEVELAND, Ohio, and ERIE, Pa. — LTC Properties Inc. (NYSE: LTC) has sold five assisted living and memory care communities in Ohio and Pennsylvania for $67.5 million. The seller and the buyer, National Health Investors Inc. (NYSE: NHI), are both publicly traded REITs targeting healthcare and seniors housing properties.
The portfolio totals 320 units, with the properties located in the Columbus, Cleveland and Erie metro areas. NHI planned for $500,000 in transaction costs and $1.75 million in capital improvements to the property. The company funded the acquisition using its revolving credit facility.
LTC expects to see gains of $48 million on the sale, and timed the disposition with the April 30 expiration of the lease on the properties. Although the tenant was not disclosed, LTC referred to the properties as the “Sunrise Portfolio,” implying that Sunrise Senior Living operates the properties.
NHI will install an affiliate of Bickford Senior Living as the new operator. The new properties increase the portfolio of NHI-owned, Bickford-operated properties to 52 leased assets, with three more under development.
KeyBanc Capital Markets Inc. and CS Capital Advisors LLC acted as LTC’s financial advisors on the transaction. Sherry Meyerhoff Hanson Crance LLP served as LTC’s legal advisor.