LTC Properties announced Monday a $62 million joint venture with Norcrorss, GA-based PruittHealth to buy three skilled nursing facilities in northern Florida. PruittHealth is a new partner for the Westlake Village, CA-based real estate investment trust, LTC said.
LTC will be the majority owner of the properties, contributing $62 million to the joint venture. An affiliate of PruittHealth will operate the three properties under a 10-year master lease, with two five-year renewal options.
PruittHealth operates more than 180 locations in Florida, Georgia, North Carolina and South Carolina, offering skilled nursing, assisted living, independent living and home healthcare.
“This investment allows us to partner with a strong regional operator that has considerable seniors housing and care expertise. With more than 50 years of history, a large footprint in the southeastern United States and a charitable foundation aimed at enriching the lives employees and those in communities served by PruittHealth, this is exactly the type of operator with whom we want to grow,” LTC Chairman and CEO Wendy Simpson said in a statement.
Simpson said with this transaction, LTC has invested more than $170 million year to date and plans to continue to look for “new opportunities across a variety of financing vehicles, including structured finance products such as unitranche loans, mezzanine loans, and preferred equity investments, as well as accretive triple net lease structures.”
The Florida properties were built between 2018 and 2021 and have a combined 299 licensed beds, primarily in private rooms.
“As we face the economic realities of inflation and increased wages, we must continue to find innovative solutions to provide seamless and superior post-acute care. We are thrilled LTC shares this vision to deliver high-quality care to the communities we serve together,” PruittHealth Chairman and CEO Neil L. Pruitt Jr. said in a statement. “We look forward to continuing to utilize best practices to ensure our patients receive the care they deserve, delivered with compassion and professionalism.”
