$104.6 Million of Acquisitions

Posted: 7/26/2012

CHICAGO, July 26, 2012- Aviv REIT, Inc. ("Aviv" or the "Company") announced today that it has acquired 15 skilled nursing facilities ("SNFs"), 3 assisted living facilities ("ALFs") and 1 long-term acute care hospital ("LTACH") in 5 separate transactions for $104.6 million.  The properties are triple-net leased to 4 existing Aviv tenants and 1 new Aviv tenant.  These transactions were completed since the beginning of the second quarter and were financed with cash on hand, the Company's lines of credit and assumed debt.

"We continue to execute our strategy to grow and diversify our business by buying quality properties with quality operators, attractive returns and at conservative valuations," said Craig M. Bernfield, the Company's Chairman, Chief Executive Officer and President.  "These acquisitions are further examples of our pipeline of opportunities that we continue to realize from our existing tenant relationships and our industry presence as a market leader."

The 5 transactions consisted of the following:

  • 15 SNFs located in Texas for $72.7 million, leased to Daybreak Venture, LLC ("Daybreak").  Daybreak is Aviv's largest tenant by in-place rent and is one of the largest private operators of SNFs in the United States, with 65 facilities in Texas, 47 of which are now leased from Aviv.  The triple-net lease has a 12 year term, an initial cash yield of 10.5 percent, annual compounded escalators of 2.0 percent and is cross-defaulted with all of the Company's other Daybreak leases.  The transaction closed on April 2nd.
  • An ALF located in Florida for $5.0 million, leased to Saber Healthcare Group, LLC ("Saber").  Saber is Aviv's second largest tenant by in-place rent and is one of the largest private multi-state operators of SNFs and ALFs in the United States, with 56 facilities in Ohio, Pennsylvania, Virginia and Florida, 26 of which are now leased from Aviv.  The triple-net lease has a 10 year term, an initial cash yield of 10.0 percent, annual compounded escalators of 2.0 percent and is cross-defaulted with all of the Company's other Saber leases.  The transaction closed on April 2nd.
  • An ALF located in Connecticut for $16.0 million leased to Maplewood Senior Living, LLC ("Maplewood").  Maplewood is Aviv's fifth largest tenant by in-place rent and is an operator of ALFs in Connecticut, with 5 facilities, all which are leased from Aviv.  The triple-net lease has a 10 year term, an initial cash yield of 8.1 percent, annual compounded escalators of 2.0 percent and is cross-defaulted with all of the Company's other Maplewood leases.  The transaction closed on June 15th.
  • An LTACH located in Indiana for $8.4 million leased to Physician's Hospital, LLC ("Physician's Hospital").  Physician's Hospital is a new tenant relationship for Aviv and operates 12 LTACHs and other healthcare facilities in Indiana. The triple-net lease has a 15 year term, an initial cash yield of 10.0 percent and annual compounded escalators of 3.0 percent.  The transaction closed on July 20th.
  • An ALF located in Wisconsin for $2.5 million, leased to Heyde Health System, Inc. ("Heyde").  Heyde is an operator of SNFs and ALFs in Wisconsin, with 4 facilities, 3 of which are now leased from Aviv. The triple-net lease has a 10 year term, an initial cash yield of 10.0 percent, annual compounded escalators based on CPI and is cross-defaulted with all of the Company's other Heyde leases.  The transaction closed on May 1st.

About Aviv

Aviv REIT, Inc., based in Chicago, is a privately-owned real estate investment trust that owns SNFs 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 now owns 250 properties that are triple-net leased to 36 operators in 28 states.

Forward-Looking Statements

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.

SOURCE Aviv REIT, Inc.