LTC Properties Inc. has announced the acquisition of a senior living community for $54 million, along with the addition of a new operating partner to its platform.
The company purchased a 104-unit assisted living and memory care community located in Phoenix, Arizona. MorningStar Senior Living has been brought on as the new operator for the property under the company's strategic platform.
This marks the eleventh operator and the ninth new partner for the platform since its launch. The property will continue to be managed by MorningStar. The acquisition was completed at a capitalization rate of 6.75%, with projected unleveraged internal rates of return anticipated to be in the low to mid double-digit range.
Michael Bowden, Senior Vice President of Investments at LTC Properties
Michael Bowden, a senior investment executive, stated that this acquisition continues the company's positive momentum and brings it closer to the midpoint of its $600 million investment target for the year. He emphasized that successful partnerships are built on a foundation of deep trust, which is exemplified by the collaboration with MorningStar.
Jamie Ranzen of MorningStar
Jamie Ranzen, President and Chief Investment Officer of MorningStar, commented that partnering with the company marks an exciting new chapter. He expressed strong alignment with the company's strategic platform model and its reputation for building lasting operator relationships.
Since the platform's inception, the company has completed $524 million in acquisitions through this channel, with $171 million of that total occurring in the current year. As of the end of the first quarter, the platform contributed 28% of the company's annualized net operating income and represented 32% of its total investments. The company expects these proportions to increase to approximately 40% and 45%, respectively, by year-end, based on the midpoint of its $600 million acquisition guidance.
The company is accelerating its strategic shift from a traditional triple-net lease model towards its current platform. It anticipates completing an additional $285 million in acquisitions through this channel before the end of the third quarter. The average age of properties within this investment portfolio is under ten years. Meanwhile, the proportion of skilled nursing facilities within the company's total investments has decreased from 46% at the end of the prior year to 31%.
LTC Properties Inc.
LTC Properties is a real estate investment trust focused on senior housing and healthcare properties, with a portfolio of nearly 190 properties across the United States.
Comments