LTC’s $33M Acquisition Play; KeyBank’s $21M Purchase Loan for Kentucky SNF

LTC Properties (NYSE: LTC) this week announced a $33 million portfolio acquisition that included a $13.5 million skilled nursing facility in Texas.

The Westlake Village, Calif.-based real estate investment trust (REIT) purchased a 140-bed skilled nursing center in Longview, Texas, operated by HMG Healthcare of The Woodlands, Texas.

HMG has a 10-year, triple-net lease on the property, with 2% annual escalators and a pair of five-year renewal options. LTC Properties estimated an initial cash yield of 8.5%.

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“My relationship with LTC spans more than a decade, and I am excited to re-engage with them as a partner in growth,” HMG principal Laurence Daspit said in a statement announcing the transaction. ”Our new partnership will support HMG Healthcare’s mission of delivering premier health care services, through dedicated and compassionate employees, to accommodate the individual needs of our residents.”

The transaction was announced alongside LTC’s $19 million acquisition of two assisted living and memory care properties — operated by Randall Residence — in Auburn Hills and Sterling Heights, Mich.

“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,” LTC CEO Wendy Simpson said in a statement. “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.”

KeyBank Turns Two in Kentucky, California

KeyBank Real Estate Capital (KBREC) this week announced the completion of two Federal Housing Administration-backed skilled nursing deals in Kentucky and California.

The Cleveland-based lender landed a $21 million FHA purchase loan for Louisville East Post Acute, a 178-bed skilled nursing facility in Louisville, Ky.

Originally built in 1969, the facility has since been renovated multiple times — most recently in 2017 — and features 105 individual units.

KBREC also secured a $13 million refinance loan for Del Rosa Villa, a skilled nursing facility in San Bernardino, Calif. The property, built in 1970, features 99 beds across 35 units.

Patrick Shearer of KBREC’s Commercial Mortgage Group and Grant Saunders of KeyBank’s Institutional Real Estate Team led both transactions for the lender.

Blueprint Facilitates Operator Exit in Ohio

Blueprint Healthcare Real Estate Advisors arranged the sale of a 74-bed skilled nursing and assisted living facility in Canton, Ohio, allowing the previous owner-operator to retire.

Built in 2016, the facility had recently undergone a failed sale process and was facing lower-than-expected occupancy numbers. The Chicago-based Blueprint located a regional developer, owner, and operator with an existing presence in Northeast Ohio to purchase the facility; that new owner plans to remove the skilled nursing beds entirely and focus exclusively on senior living, including the addition of memory care services.

Blueprint’s Connor Doherty and Ryan Kelly served as lead advisors on the deal.

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