LTC's Securities and Exchange Commission filing regarding the transaction did not name the properties. A source at Sunwest tells GlobeSt.com the acquisition included Park Place, in Portland; Canyon Crest, in Tuscon; the Palms, in Roseville, CA; and Sandia Springs, in Rio Rancho, NM. LTC Properties CFO Wendy Simpson refused to speak with GlobeSt.com about the transaction.
The properties were originally acquired by LTC in 1998 for $32.7 million, according to the SEC filing. They were leased to HFJ LLC, a Sunwest managed entity, under a master lease that provided annual rental income of approximately $4.1 million, states the filing. Sunwest also leases and manages four other LTC properties, according to LTC's 2004 annual report.
Sunwest Management was founded in 1991 with a portfolio of three properties. The company now manages over 150 communities nationwide.
LTC owns 10,800 beds in 55 skilled nursing properties and 88 assisted living properties in 23 states. The company disclosed its gain on the sale as approximately $32 million. The company plans to pay down debt and use the balance to fund renovations and expansions of existing properties and to make new investments.
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