CHICAGO—Aviv REIT, Inc., a Chicago-based trust focused on healthcare properties, has just acquired nine post-acute and long-term care skilled nursing facilities in Kentucky and Iowa in two separate transactions for $48.50 million. The purchases get the New Year off to a strong start for Aviv, which conducted a $304 million IPO in 2013.
Seven of the SNFs are located in Kentucky and triple-net leased to Providence Group, a new operator for Aviv which runs nine SNFs in Kentucky and California. The other two are located in Iowa and triple-net leased to Trillium Healthcare, an Aviv operator that runs ten facilities in Iowa and Nebraska. Aviv officials say their newest investments have a blended initial cash yield of 10.7%, annual escalators and initial lease terms of ten years.
“The Providence and Trillium acquisitions further demonstrate our ability to source attractive, accretive acquisitions of high-quality SNFs with experienced operators with whom we have strong relationships, consistent with our strategy,” says Craig M. Bernfield, chairman and chief executive officer of Aviv. The trust has already closed $104 million of acquisitions year-to-date, following $159 million of acquisitions in the fourth quarter and $239 million of total investments in 2013.
“We have enhanced our diversified portfolio by creating another new operator relationship with the Providence team, which has over 20 years of experience operating SNFs, and by doing another acquisition with Trillium, an operator relationship we have built over the past five years,” Bernfield adds. “We have an active pipeline, access to capital and we feel confident that we will continue to execute our growth strategy.”