LTC Properties (NYSE:LTC) announced the acquisition of a skilled nursing property with 156 licensed beds in Colton, CA for $17.5 million.
Built in 1990, the facility primarily operates a sub-acute program that consists mainly of managed care contracts and specialty government reimbursement said LTC.
Simultaneous with the purchase, the LTC leased the property to an unrelated third-party operator pursuant to a 12-year lease agreement at an initial cash yield of 9.25% and a GAAP yield of 10.34%. The lease contains annual escalations of 2.0% and has two 10-year renewal options.
LTC properties is a self-administered real estate investment trust that primarily invests in long-term care and other health care related facilities through mortgage loans, facility lease transactions and other investments.
Written by John Yedinak