LTC Properties announced a $54 million acquisition of a 104-unit assisted living and memory care community in Phoenix, Arizona, expanding its Seniors Housing Operating Portfolio (SHOP) platform and adding MorningStar Senior Living as its eleventh SHOP operator.
The acquisition marks another step in LTC’s strategy to grow its SHOP portfolio and increase its exposure to seniors housing assets. MorningStar Senior Living will continue managing the community, becoming the ninth new operator added to LTC since the company launched its SHOP platform in May 2025.
According to LTC, the acquisition carries a 6.75% capitalization rate and is expected to generate an unlevered internal rate of return in the low-to-mid teens. The transaction is being funded through the company’s revolving line of credit and future proceeds from previously disclosed asset sales and loan payoffs.
Since launching the SHOP platform, LTC has completed $524 million in SHOP acquisitions, including $171 million during 2026. The company said SHOP now represents approximately 28% of annualized net operating income and 32% of gross investments. Based on the midpoint of LTC’s 2026 acquisition guidance, SHOP is expected to account for approximately 40% of NOI and 45% of gross investments by year-end.
LTC also noted that the average age of its SHOP properties is less than 10 years and that its skilled nursing exposure has declined to 31% of gross investments from 46% at the end of 2024.
The company said it expects an additional $285 million in SHOP acquisitions to close by the end of the third quarter as it continues pursuing growth opportunities within the seniors housing sector.
KEY QUOTES:
“This acquisition continues our momentum as we move closer to our $600 million midpoint investment guidance for 2026, and we are excited to add MorningStar Senior Living as one of our SHOP operators. Successful partnerships are built on deep relationships, which is the case here and for all of our operator partners. Since our platform launch, we have partnered with eleven SHOP operating partners, nine new to LTC. We continue to build our acquisition pipeline with a healthy volume of potential SHOP acquisitions, supporting our strategy to position LTC for higher intrinsic growth.”
Michael Bowden, Senior Vice President, Investments, LTC Properties
“Partnering with LTC marks an exciting new chapter for MorningStar Senior Living. We appreciate LTC’s strategic approach to SHOP and their reputation for building enduring operator relationships. With LTC’s capital behind us, we are well-positioned to accelerate our growth and deliver exceptional lifestyle experiences for our residents.”
Jamie Ranzen, President and Chief Investment Officer, MorningStar Senior Living
