CHICAGO—Aviv REIT, Inc., a Chicago-based REIT focused on healthcare properties, has just acquired four post-acute and long-term care skilled nursing facilities in Texas and Illinois in two separate transactions for $20.0 million. The purchases close what has been a good year for Aviv, which conducted a successful IPO earlier in 2013.
One of the SNFs is located in Texas and triple-net leased to an existing Aviv operator called Fundamental Long Term Care, an operator of 102 facilities in 13 states. The others are located in Illinois and triple-net leased to Bridgemark Healthcare, another Aviv operator that runs ten facilities in the state. Aviv officials say these investments have a blended initial cash yield of 9.9%, annual escalators and initial lease terms of seven and ten years, respectively.
“Our relationship-oriented growth strategy continues to produce accretive acquisitions, as Fundamental and Bridgemark brought both of these transactions exclusively to us,” says Craig M. Bernfield, chairman and CEO of Aviv. “Fundamental is a new operator relationship for us this year, and with this transaction, they are now our seventh largest operator. Fundamental, like our other sophisticated and experienced operators, is able to partner with hospitals, physicians groups and managed care organizations because they provide quality care in an efficient and low-cost setting. The prospects for the SNF industry remain attractive and, given our pure-play focus, we are in a strong position to be a beneficiary of today’s evolving healthcare environment.”
Aviv currently owns 281 properties that are triple-net leased to 38 operators in 29 states.