LTC Buys 242-Unit Campus in Ohio for $45M

by Jeff Shaw

OHIO — LTC Properties Inc. (NYSE: LTC) has made a $45 million joint venture investment for the purchase of an independent living, assisted living and memory care campus in Ohio.

The campus was built between 2019 and 2022, includes a total of 242 units, and is now operated by current LTC partner, Encore Senior Living.

Additionally, the transaction includes a $2.1 million lease incentive. The lease term is 10 years at an initial yield of 8.25 percent, and includes a purchase option for the seller during the third and fourth lease years. Rent is expected to be approximately $3.9 million per year.

In a separate deal announced simultaneously, LTC originated a $16.5 million senior loan for the purchase of a skilled nursing center in Illinois. The center, which was built in 2010 and extensively renovated in 2021, is licensed for 150 beds and is now operated by current LTC partner, Ignite Medical Resorts. The loan term is five years at an interest rate of 8.75 percent.

LTC also offered an update on the transition a portfolio of eight assisted living communities with 500 units in Illinois, Ohio and Michigan to Encore. LTC was providing assistance to the former operator of this portfolio and as part of the transition, LTC received repayment of approximately $1.3 million of deferred rent previously not recorded.

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