Aviv REIT has acquired four post-acute and long-term care skilled nursing facilities (SNFs) in Ohio and Indiana for USD35.9m.
The properties are triple-net leased to existing Aviv operator Diversicare Healthcare Services.
Diversicare is an operator of SNFs and assisted living facilities with 47 facilities in nine states.
Aviv has now closed three transactions with Diversicare totalling USD55m in the past year.
The triple-net lease has an initial cash yield of 10 per cent, 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," says 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."