LTC Properties Inc., a real estate investment trust, has acquired four LuxeRehab centers for about $52 million.
LTC Properties initially funded the acquisition using its unsecured revolving line of credit and will use proceeds from previously announced asset sales to pay off its line of credit. Going forward, LuxeRehab will be operated by Ignite Medical Resorts and will pay rent to LTC properties.
The lease term is 10 years with two 5-year renewal options. There is a purchase option during the fifth lease year through the seventh lease year. The Company will receive approximately $4.3 million in rent during 2023. The rent will increase annually beginning on the third year of the lease by 2 percent to 4 percent based on shifts in the Medicare Basket Rate.
Wendy Simpons, LTC’s Chairman and CEO, said, “We are deeply focused on growth this year, and plan to utilize our creativity and flexibility to identify new investment opportunities, from sale-leasebacks to structured finance deals, while attracting solid regional operators with whom we can grow.”