LTC Properties divested seven skilled nursing facilities through two separate deals for $122 million in October. In those transaction announcements, the publicly traded REIT noted that it intended to redeploy proceeds for the acquisition of newer, stabilized SHOP assets. It looks like that’s what the publicly traded REIT did in Georgia at the start of November.
LTC Properties used those proceeds to fund a $23 million, or $261,400 unit, purchase of an 88-unit assisted living and memory care community in Marietta, Georgia. The community is currently stabilized at 90% occupancy and is expected to deliver a year-one yield of approximately 7%. The Arbor Company, a new LTC operating partner, has managed Arbor Terrace Burnt Hickory since its inception in 2017. Brooks Blackmon, Steve Thomes, Kory Buzin and Lauren Nagle of Blueprint handled the transaction on behalf of the undisclosed seller.
The REIT has now closed approximately 85% of its projected $460 million 2025 pipeline. Of this, more than $290 million has been added to its SHOP portfolio. An additional $70 million in SHOP acquisitions are expected to close in the next 60 days. When the Georgia transaction announcement was made on November 3, LTC’s SHOP investments made up approximately 20% of its real estate portfolio, and included 22 properties across six operators, four of which are new to LTC.
