LTC Invests $51M for Refinance of Seniors Housing Campus in Upscale Atlanta Area
New loan pays off banks and an outstanding $7.5M mezzanine loan
LTC Properties invested $51.1 million in Corso Atlanta by purchasing a participation in an existing mortgage loan. The new loan will be used to pay off certain current banks and LTC’s outstanding $7.5 million mezzanine loan, which was funded in 2019 for the community’s construction.
Corso Atlanta, located in the Buckhead area of Atlanta, is a new, luxury 203-unit gated independent living, licensed assisted living and memory care community owned and operated by an existing LTC partner, an affiliate of Galerie Living. The rate on the new senior mortgage loan, which matures in October 2024, is 7.50%, with an IRR of 7.75%. LTC expects to record $3.4 million of interest income from this mortgage loan during 2023, as well as $1.4 million of additional interest during the 2023 first quarter related to the exit IRR on the early payoff of its mezzanine loan scheduled to mature on December 1, 2023.