LTC Properties Buys Four SHOP Communities in Minnesota

REIT LTC Properties this week announced a new $200 million Senior Housing Operating Portfolio (SHOP) acquisition in Minnesota.

The company said the communities total 453 independent living, assisted living, and memory care units with an average age of nine years. The anticipated year-one cap rate is approximately 7 percent, with an anticipated unlevered IRR in the low- to mid-teens.

IRR refers to the internal rate of return on an investment assuming it is purchased with 100 percent equity, using cash flows before any debt service. It reflects pure asset performance independent of financing.

Highlights from the deal include:

- Operating Partner: Lifespark Senior Living, an existing LTC SHOP operator assumed operations.

• Funding: $167 million of proceeds from the sale of a portfolio of 13 skilled nursing centers in Texas. The portfolio had annualized contractual cash income of $12.4 million and a net book value of $101 million. The remainder of the funding was from LTC’s revolving line of credit, which is anticipated to be repaid by Oct. 1 with proceeds from additional asset sales.

• Continued Momentum: Since launching SHOP in May 2025, LTC has grown its portfolio from 13 to 43 communities with an average age of 10 years, now representing 38 percent of the company’s annualized net operating income. The platform spans 12 operators, 10 of which are new LTC relationships since LTC’s launching of SHOP.

"Adding these communities with Lifespark advances our strategy of growing alongside strong operators with quality assets that provide great scale, desirable unit mix and compete successfully in their markets," said Dave Boitano, LTC's executive vice president and chief investment officer.

"We've now closed nearly $580 million in acquisitions this year, with another $120 million expected to transact by the end of September. LTC is building a scalable growth engine fueling continued SHOP momentum and long-term shareholder value."

LTC is a real estate investment trust (REIT) focused on seniors housing and healthcare properties, principally investing through SHOP, as well as triple-net leases, and joint ventures. The company’s portfolio includes 180 properties throughout the country. Based on gross real estate investments, 77 percent of the company’s assets are seniors housing communities with the remainder skilled nursing centers. Learn more at www.ltcreit.com.

Comments or questions? Contact Patrick Connole at pconnole@parkplacelive.com.