Aviv REIT, Inc. ("Aviv" or the "Company") (NYSE: AVIV) announced it has acquired four post-acute and long-term care skilled nursing facilities ("SNFs") in Texas and Illinois in two separate transactions for $20.0 million.
One of the SNFs is located in Texas and is triple-net leased to existing Aviv operator Fundamental Long Term Care ("Fundamental"), an operator of 102 facilities in 13 states, and one of the largest operators in the U.S., and the other three SNFs are located in Illinois and triple-net leased to existing Aviv operator Bridgemark Healthcare ("Bridgemark"), an operator of ten facilities in Illinois. 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," said Craig M. Bernfield, Chairman and Chief Executive Officer 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."