Real estate investment trust LTC Properties has acquired three new properties, including a 140-bed skilled nursing facility.
Both regional operators are new to LTC.
HMG Healthcare will operate the Longview, Texas, skilled nursing center, which was acquired for $13.5 million. The transaction includes a 10-year triple net master lease that escalates 2% annually starting in the second year of the lease, with two, five-year renewal options, and an Initial cash yield of 8.5%.
“My relationship with LTC spans more than a decade, and I am excited to re-engage with them as a partner in growth,” said Laurence Daspit, principal of HMG Healthcare.
The Michigan communities, located in Auburn Hill and Sterling Heights, will be operated by Randall Residence. They were acquired for $19 million, with an additional capital improvement investment of about $2 million in the first year of the lease. The communities includes a combined 156 assisted living and memory care units
“We remain committed to partnering with strong regional operators that are demonstrating executable and targeted growth plans, and Randall Residence and HMG Healthcare embody these characteristics,” said Wendy Simpson, LTC’s CEO and President. “We have been cultivating these relationships for some time, and have confidence in their ability to perform well by focusing on residents and best-in-class operations. These partnerships provide a pathway for growth for all of us.”