NHI Nabs Senior Housing Portfolio for $68M

The 320-unit Sunrise Portfolio includes six assisted living and memory care properties located in Ohio and Pennsylvania. Bickford Senior Living will lease the communities.

By Beata Lorincz

LTC Properties Inc. has sold six senior housing communities to National Health Investors Inc. for $67.5 million. The 320-unit Sunrise Portfolio includes five assisted living and one memory care property in five locations across Cleveland, Columbus and Erie, Pa.

The buyer planned for $500,000 in capitalized transaction costs and $1.8 million for capital improvements. An affiliate of Bickford Senior Living will lease the properties at an initial rate of 6.9 percent with annual fixed escalators and a 15-year maturity.

A draw on NHI’s revolving credit facility funded the acquisition. The transaction, structured to close simultaneously with the April 30 lease expiration on the properties, is expected to provide LTC a net gain on sale of approximately $48 million in the second quarter. KeyBanc Capital Markets Inc. and CS Capital Advisors LLC worked as financial advisors for the seller, while Sherry Meyerhoff Hanson & Crance LLP acted as LTC’s legal advisor.

“This transaction demonstrates the asset value of our portfolio, affording us the opportunity to strategically recycle capital and continue investing in newer, modernized assets,” said Wendy Simpson, LTC’s chairman & CEO, in prepared remarks.

NHI had previously expanded its portfolio with the purchase of a 121-bed skilled nursing facility in Waxahachie, Texas, for $14.4 million.

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