Aviv REIT Closes $48M in Acquisitions

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.