LTC Properties Acquires Facility, Vacant Land for $16.3 Million

LTC Properties Inc., a self-administered health care REIT, recently acquired a health care facility in Pasadena, Tex. in a sale-leaseback transaction for $15.5 million, in addition to a vacant parcel of land in Amarillo.

The 94,567-square-foot facility, built in 2005, has a total of 196 licensed beds.

The land parcel was purchased for $844,000 to fund the construction of a 120-bed licensed skilled nursing property; this facility will replace a 90-bed licensed skilled nursing property in the company’s existing portfolio. With the land purchase, the REIT entered into a commitment, in an amount not to exceed $8.25 million, to fund the construction of the new skilled nursing facility.


The construction is expected to be completed within 12 to 18 months, and upon completion, residents of the existing facility will be relocated to the new one, with the old property to be classified as held-for-sale.

Both properties are leased to an operator within LTC’s existing portfolio pursuant to a 10-year master lease agreement at a cash yield of 9.6% and a GAAP yield of 11%; the master lease contains annual escalations of 2.5% and has two five-year renewal options.

Written by Alyssa Gerace