LTC Properties buys four Minnesota seniors housing communities for $200 million

LTC Properties announced a $200 million acquisition of four seniors housing operating portfolio communities in Minnesota, totaling 453 units.

• Expected year-one cap rate near 7%; anticipated unlevered IRR in the low-to-mid teens.
• Lifespark Senior Living assumed operations for the four communities.
• The transaction expands the SHOP portfolio to 43 communities; SHOP now contributes 38% of annualized net operating income.

The deal was funded mainly with $167 million from selling 13 Texas skilled nursing centers; the remaining funding was drawn from a revolving credit line.