Westlake Village-based real estate investment LTC Properties announced that it has originated a $52.5 million unitranche loan for the purchase of a senior housing portfolio that includes 13 properties in North and South Carolina.
The loan will provide capital improvements, $650,000 of working capital and $6.1 million of additional commitments, all making up a total investment commitment of approximately $60 million. The loan interest is 7.25 percent with an internal rate of return of 8 percent. It will mature in four years.
The communities will be operated by an existing LTC operator, the company said.
Wendy Simpson, LTC’s chief executive, said in a statement that LTC’s balance sheet and history of financing to regional operators allowed the company to adapt to the evolution of senior housing investments.
“On the heels of our recent announcement of $46 million in investments through a variety of loan vehicles, this structured finance investment is another example of our ability to provide operators with the financing they need, when they need it,” Simpson said.
The company announced the loan Thursday. Shares of LTC closed down 29 cents, or less than 1 percent, at $32.07 on the Nasdaq Friday, a day when the market closed down nearly 2 percent.