LTC Properties Inc., a real estate investment trust investing in seniors housing and care, has acquired a post-acute skilled nursing center plus a land parcel to develop a similar product in the Kansas City metro area. The centers will be operated by Ignite Medical Resorts (Ignite), an operator new to LTC.
LTC acquired a 90-bed post-acute skilled nursing center built in 2018 in Kansas City, Missouri for $19.5 million. The lease term is 12 years at an initial cash yield of 8.3%, escalating 2% annually, and two five-year renewals. The center averages 90% occupancy and generates more than $1.0 million in monthly revenue.
LTC also acquired a parcel of land and committed to develop a 90-bed post-acute skilled nursing center in Independence, Missouri. The commitment totals $17.4 million. Upon certificate of occupancy and licensure, the center will have a 12-year lease at an initial cash yield of 9.3%, escalating 2% annually, and two five-year renewals. Completion is scheduled for the fall of 2020. Avenue Development, a full-service development company focused on healthcare and senior living, is managing the project.
“These acquisitions represent our positive outlook on the next generation of post-acute skilled nursing,” said Wendy Simpson, LTC’s CEO and President. “We are optimistic about our new partnership with Ignite and their innovative approach to rapid rehabilitation in a resort-style setting. We are also very pleased to continue working with Avenue Development, with whom we have a long-standing relationship and are thankful they introduced us to Ignite.”
“We are excited to partner with LTC on our Kansas City projects,” says Tim Fields, Ignite’s Co‑Founder and CEO. “And we look forward to growing with them on future opportunities.”