A little more than a month after announcing its acquisition of 29 properties from Diamond Senior Living, Chicago-based Aviv REIT, Inc. (NYSE: AVIV) today closed the transaction valued at $305 million.
The deal, which was Aviv’s largest acquisition in three decades, included 23 skilled nursing facilities and one office building, with the remainder comprising assisted and independent living properties.
Purchased in early November from Diamond Senior Living, a subsidiary of General Electric Credit Corporation of Tennessee, all of the properties are currently triple-net leased to new Aviv operator Laurel Health Care at an initial cash yield of 8.5% for a remaining term of 15 years.
The Westerville, Ohio-based Laurel operates 42 skilled nursing facilities and other healthcare facilities in five states, 28 of which Laurel will now lease from Aviv.
The transaction with Diamond followed just five days after Aviv’s announced mega merger with Omega Healthcare Investors (NYSE: OHI), a deal that valued Aviv at $3 billion.
Combined, the Omega-Aviv platform will create the largest skilled nursing REIT in the country with a portfolio of 874 properties across 41 states and 83 operator relationships.
Written by Jason Oliva