Aviv REIT has acquired a post-acute and long-term care skilled nursing facility (SNF) in Texas for USD3.5m.
The property is triple-net leased to existing Aviv tenant Trinity Healthcare. Trinity is an operator of SNFs with three facilities in Texas, all of which are leased from Aviv.
The triple-net lease has an initial cash yield of 11 per cent, initial lease term of 10 years and an annual compounded escalator based on CPI.
"This is our third attractive acquisition with Trinity in less than a year and we are committed to working collaboratively with Trinity to help grow its business," says Craig M Bernfield, chairman and chief executive officer of Aviv. "Trinity sourced this acquisition and brought it to us because of our strong relationship with them. Our ability to cultivate strong relationships with operators is key to providing us ongoing opportunities to grow our business."