LTC Properties buys 2 SHOP communities for $73 million
LTC Properties acquired two senior housing communities in Colorado and New Mexico for $73 million at a 7% cap rate, funded by ATM sales. The acquisition expands the SHOP platform to 36 properties, representing 34% of gross investments, aligning with goals for $600 million in acquisitions.
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LTC Properties, Inc. expanded its SHOP portfolio by acquiring two communities in Colorado and New Mexico for a combined purchase price of $73 million. The transaction, completed at a cap rate of approximately 7%, was funded with proceeds from ATM sales and is expected to generate an unlevered IRR in the low- to mid-teens. MorningStar Senior Living, an existing LTC SHOP operator, will continue managing the communities.
Acquisition Details
The acquisition was sourced off-market, highlighting the strength of LTC's partnerships with operators. David Boitano, Chief Investment Officer, emphasized that relationships are central to the company's growth strategy. The deal aligns with LTC's goal to reach $600 million of acquisitions and 40% annualized SHOP NOI by year-end.
Portfolio Expansion
Since launching SHOP in May 2025, LTC has grown the platform to 36 properties, which now represent 34% of the company's total gross real estate investments. The portfolio spans eleven operators, including nine new relationships for LTC.
LTC Properties Overview
LTC is a real estate investment trust (REIT) focused on seniors housing and health care properties. The company invests through SHOP, triple-net leases, and joint ventures. Its portfolio includes nearly 190 properties across the United States, with nearly 70% allocated to seniors housing communities and the remainder to skilled nursing centers.
| Metric | Value |
|---|---|
| Purchase Price | $73 million |
| Cap Rate | ~7% |
| Expected Unlevered IRR | Low- to mid-teens |
| Total SHOP Properties | 36 |
| Portfolio Share of Gross Investments | 34% |
| Total Properties (Overall) | Nearly 190 |
How will LTC Properties prioritize capital allocation between further SHOP acquisitions and other investment vehicles like triple-net leases moving forward?
What is the likelihood of LTC extending its management agreements with the nine new operator relationships introduced through the SHOP platform?
Could the success of off-market sourcing in this deal signal a strategic shift away from public market transactions for future acquisitions?
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