WESTON MA—Chicago-based Aviv REIT Inc. has acquired two assisted living facilities and one post-acute and long-term care skilled nursing facility as well as two parcels of land and the entitlements for the construction of two new ALFs and a 50-unit addition to one existing ALF for a total purchase price of $94.2 million.

All of the properties and land purchased are in the state of Massachusetts. The additional construction projects are valued at an additional $58 million. The acquisitions include a 126-unit ALF and a 72-unit SNF located in West Yarmouth, MA, located in the center of Cape Cod, and a 93-unit ALF located in Weston, MA, a suburb of Boston. The new construction projects include two ALFs in West Yarmouth and an ALF in Brewster, MA, also located on Cape Cod.

The properties will be triple-net leased to existing Aviv operator Maplewood Senior Living of Westport, CT, an operator of 12 facilities in three states, all of which are triple-net leased from Aviv. The acquisition has an initial cash yield of 8.0%, which increases to 8.5% in year two, with CPI-based annual escalators thereafter, and an initial lease term of 10 years. The new construction projects have an initial cash yield of 9.0% upon completion, with CPI-based annual escalators, and an initial lease term of 10 years.

“This deal demonstrates our ability to opportunistically acquire high-quality senior housing properties at attractive valuations, complementing our primary investment strategy of acquiring post-acute and long-term care skilled nursing facilities," says Craig M. Bernfield, chairman and CEO of Aviv. "We further diversified our high-quality portfolio, adding best-in-class private pay healthcare properties in desirable northeast markets, and further enhanced our tenant diversification by materially growing our relationship with Maplewood."

While not releasing the names or specific locations of the properties, Aviv states in its announcement that the 50-unit addition to the existing ALF in West Yarmouth will have a total estimated cost of $12.6 million and an initial cash yield of 9.0%. Construction is expected to begin in the second quarter of 2015 and is scheduled to be completed in the third quarter of 2016.

The 75-unit ALF in West Yarmouth has a total estimated cost of $19.8 million and an initial cash yield of 9.0%. Construction is expected to begin in the second quarter of 2015 and is anticipated to be completed in the third quarter of 2016.

The 131-unit ALF in Brewster comes with a total estimated cost of $37.3 million and an initial cash yield of 9.0%. Construction is expected to start in the fourth quarter of 2014 and is projected to be completed in the second quarter of 2016.