Business & Finance
WESTLAKE VILLAGE, Calif.--([ BUSINESS WIRE ])--[ LTC Properties, Inc. ] (NYSE: LTC) (athe Companya) announced today that it acquired a 3.16 acre vacant parcel of land in Colorado (Denver MSA) for a purchase price of $1.9 million. Simultaneous with the purchase, the Company entered into a lease agreement and development commitment in an amount not to exceed $7.9 million to fund the construction of a 60-unit free-standing, private-pay memory care property. Rent under the lease will begin upon the earlier of project completion or the improvement deadline of August 1, 2013. Initial 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 each advance under the commitment from the disbursement date until the earlier of project completion or the improvement deadline. The lease has an 11-year initial term, four five-year renewal options and annual escalations of 2.5%.
The Company is a self-administered real estate investment trust that primarily invests in long-term care and other health care related facilities through facility lease transactions, mortgage loans and other investments. For more information on LTC Properties, Inc., visit the Companyas website at [ www.ltcproperties.com ].