Aviv REIT has acquired a post-acute and long-term care skilled nursing facility (SNF) in Kentucky for USD6.0 million.
The SNF is triple-net leased to existing Aviv operator Diversicare Healthcare Services, an operator of 49 facilities in nine states.
The investment has an initial cash yield of 9.8 per cent, CPI-based annual escalators and an initial lease term of 14 years.
"We have continued our strong and consistent pace of investment activity by closing our ninth acquisition in 2014, with our year-to-date investments now reaching USD195 million," says Craig M Bernfield, chairman and chief executive officer of Aviv. "This represents our third follow-on acquisition with Diversicare in the past year and is another attractive off-market opportunity sourced by our business development team. We are optimistic about our ongoing growth prospects because of the strength of our operator relationships and our national network of industry contacts."