CHICAGO, Oct. 1, 2013 /PRNewswire/ -- Aviv REIT, Inc. ("Aviv" or the "Company") (AVIV) announced today it has acquired four post-acute and long-term care skilled nursing facilities ("SNFs") in Ohio and Indiana for $35.9 million. The properties are triple-net leased to existing Aviv operator Diversicare Healthcare Services ("Diversicare"). Diversicare is an operator of SNFs and assisted living facilities with 47 facilities in nine states. Aviv has now closed three transactions with Diversicare totaling $55 million in the past year. The triple-net lease has an initial cash yield of 10.00%, initial lease term of 15 years and annual compounded escalators based on CPI.
"This transaction is strategic because we have further grown our relationship with Diversicare, further diversified our presence in Ohio and further diversified the portfolio," said Craig M. Bernfield, Chairman and Chief Executive Officer of Aviv. "Our business development team did a great job sourcing this deal, and our pipeline has been strong because of their efforts and the relationships we have with outstanding operators. We will continue to grow in a disciplined fashion by consistently focusing on the quality of the operators and real estate, and the strength of the markets."
Aviv REIT, Inc., based in Chicago, is a real estate investment trust that specializes in owning post-acute and long-term care skilled nursing facilities and other healthcare properties. Aviv is one of the largest owners of SNFs in the United States and has been in the business for over 30 years. The Company currently owns 266 properties that are triple-net leased to 35 operators in 29 states.
For more information about the Company, please visit our website at www.avivreit.com or contact:
David J. Smith, Managing Director, Investor Relations & Capital Markets at 312-855-0930.
This press release may include forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "intends," "continue" or similar terminology. These forward-looking statements are made based on our current expectations and beliefs concerning future events affecting us and are subject to uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control, that could cause our actual results to differ materially from those matters expressed in or implied by these forward-looking statements. These uncertainties include, but are not limited to, uncertainties relating to the operations of our tenants, including those relating to reimbursement by government and other third-party payors, compliance with regulatory requirements and occupancy levels, regulatory, reimbursement and other changes in the healthcare industry, the performance and reputation of our tenants, our ability to successfully engage in strategic acquisitions and investments, the effect of general market, economic and political conditions, the availability and cost of capital, changes in tax laws and regulations affecting REITs and our ability to maintain our status as a REIT. Important factors that could cause actual results to differ materially from our expectations include those disclosed under "Risk Factors" and elsewhere in filings made by Aviv REIT, Inc. and Aviv Healthcare Properties Limited Partnership with the Securities and Exchange Commission.
- Health Care Industry
- skilled nursing facilities