Two Texas memory care facilities – one in Fort Worth, the other in Frisco, have been acquired by Westlake Village, California-based LTC Properties Inc. (NYSE:LTC) for$25.2 million.
LTC Properties, a real estate investment trust that primarily invests in seniors housing and health care properties, said the sale-leaseback acquisition of the two Texas memory care communities is comprised of 88 units and 133 beds. The communities were owned and will continue to be operated by Koelsch Communities under a new, 10-year master lease at a starting cash yield of 7.25 percent.
Riverside Inn, based in Fort Worth and built in 2014, is a 68-bed, 42-unit memory care community. Saddle Brook, based in Frisco and built in 2015, is a 65-bed, 46-unit memory care community.
New to LTC’s portfolio of operators, Koelsch Communities has owned and operated seniors housing since 1958. Koelsch currently operates 34 independent living, assisted living, memory care, and respite care communities in eight states.
“We are excited to be working with Koelsch as our newest operating partner. Koelsch has been successfully operating seniors housing properties for 60 years,” said Wendy Simpson, LTC’s chairman and CEO. “As a strong regional operator with a solid balance sheet, they represent exactly the type of strategic partner we want to work with to enhance our portfolio.”
“Koelsch is pleased with our new relationship with LTC,” said Aaron Koelsch, president and CEO of Koelsch Communities. “With LTC as capital partners, we can remain operationally committed to the principles and values that have been our cornerstones for the last 60 years—offering unprecedented service and care, while treating our residents with dignity and respect.”