REIT LTC Properties, Inc. (NYSE: LTC) sold two New Mexico facilities, totaling 235 beds, for $21.3 million.
According to LTC, as a result of the sale, the two properties were removed from the operator’s master lease, and LTC provided a rent decrease of 7.5% of the net proceeds, or approximately $1.5 million of cash rent, to the operator. The centers were built in 1975 and 1985.
“As part of our active asset management program, we identify opportunities to reduce the age of our portfolio and provide us with capital that can be better deployed through new investments or deleveraging our balance sheet,” said Wendy Simpson, LTC’s Chairman and CEO, in a press release. “This sale was in the best interest of LTC and the operator, and we look forward to continuing working with them through the four skilled nursing centers and one behavioral hospital they continue to operate under the master lease.”
The proceeds will be used to pay down the Company’s unsecured revolving line of credit.
ESI Arranges Sale of a Portfolio in Pennsylvania for $39 Million
Evans Senior Investments (ESI) represented the exit from the long term care industry for a Pennsylvania owner/operator, which had a portfolio consisting of three properties comprising 395 skilled nursing beds and 32 senior housing units.
The purchase price was $39,000,000 or $91,000 per functional bed/unit.
“The ESI Team was successfully able to showcase how a new regional owner/operator could eliminate the agency staffing issues by utilizing their regional recruiting network” commented Henry Fuller, Senior Associate at ESI.
According to ESI, at the time of marketing, the average census was 64% with total portfolio revenue of $27,200,000 and net operating income of -$1,500,000 or a -5% net operating income margin. While under contract, census reached a low of 57% as a result of regulatory deficiencies and staffing shortages.
ESI Arranges Sale of Three Skilled Nursing Communities in Virginia
Evans Senior Investments (ESI) arranged the sale of a three-property portfolio in Virginia on behalf of Hill Valley Healthcare. The purchase price was $59,000,000, or $184,375 per bed.
“Despite not owning any long-term care communities, Evans Senior Investments was able to coordinate a successful closing and transition for a new operator,” said Brendan DeSilvia, associate at Evans Senior Investments, in a press release.
According to ESI, the assets were located in the eastern part of Virginia and included 270 skilled nursing beds and 50 assisted living beds. Despite two buildings being located in rural markets, the portfolio maintained an occupancy average of 86% during the marketing process.
An East-coast based group that was looking to make their first acquisition in the industry was ultimately selected as the buyer.
