LTC Acquires 6 Acre Parcel in Frisco, TX for $1M
LTC Properties, Inc. (NYSE:LTC) has purchased two parcels of land for a total of $3.1 million and entered into development commitments totaling $26.2 million.
The Company purchased a 6 acre parcel of land in Frisco, Texas for $1.0 million and entered into a lease and development commitment with affiliates of Mustang Creek Estates in an amount not to exceed $4.8 million for the construction of an 81-unit assisted living and memory care facility.
Rent at the rate of 9.25% will be calculated based on the land purchase price and construction costs funded plus 9.0% compounded on the land purchase price and each amount funded under the commitment.
Payment of rent will begin on the earlier of the issuance of the certificate of occupancy or the 15th month following the land acquisition. The lease has a 10-year initial term, two 5-year renewal options and annual escalations of 2.5%.
The Company also purchased an 11.2 acre vacant parcel of land in Northern Kentucky (Cincinnati MSA) for $2.1 million. Simultaneous with the purchase, the Company added the land parcel to an existing master lease with affiliates of Carespring Health Care Management, LLC and made a development commitment to fund the construction of a 143-bed skilled nursing facility in an amount not to exceed $21.4 million.