Sonida Senior Living, Inc. (the “Company” or “Sonida Senior Living”) (NYSE: SNDA), a leading owner-operator of senior living communities, announced that it entered into a purchase and sale agreement to acquire two recently renovated senior living communities for approximately $12.3 million.
The communities, Northfield Senior Living and Southfield Senior Living, include 157 independent living units and are located approximately 20 minutes outside of downtown Indianapolis near major highways, stores and restaurants. The assets complement Sonida Senior Living’s existing Indianapolis portfolio and will leverage the strength of the Company’s local leadership team. The Company expects the acquisition to close in the first quarter of 2022 subject to customary closing conditions.
“This transaction represents the Company’s approach to pursuing accretive, tuck-in growth in markets where we have operational expertise and can leverage deep market knowledge and scale,” said Kimberly S. Lody, President and CEO. “The signing of this acquisition marks the Company’s shift into the growth phase of our strategic plan following the recently closed $154.8 million capital raise and strategic investment from Conversant Capital.”
The properties recently underwent a significant refurbishment, and the Company’s purchase price, equating to approximately $79,000 per unit, represents a significant discount to replacement cost. Demographics in the surrounding market area include a growing 75+ population with above average middle-income characteristics and unmet demand for this type of low-acuity senior living product. Due to the operational disruption from the renovation projects prior to the onset of COVID-19, the two assets have an in-place November occupancy of 55.5%, as compared to Sonida Senior Living’s independent living occupancy of 82.7% for the same period. By implementing Sonida Senior Living’s institutionalized processes and resources, the Company expects to deliver NOI growth through lease up and additional resident services with the assets projected to generate a 9% stabilized NOI yield (unlevered).
Safe Harbor
The forward-looking statements in this release are subject to certain risks and uncertainties that could cause the Company’s actual results and financial condition to differ materially, including, but not limited to: the satisfaction of all conditions to the closing of the proposed transaction; other risks related to the consummation of the proposed transaction, including the risk that the transaction will not be consummated within the expected time period or at all; the continued spread of COVID-19 and highly contagious variants and sub-lineages, including the speed, depth, geographic reach and duration of such spread; new information that may emerge concerning the severity of COVID-19; the actions taken to prevent or contain the spread of COVID19 or treat its impact, the legal, regulatory and administrative developments that occur at the federal, state and local levels in response to the COVID-19 pandemic and the frequency and magnitude of legal actions and liability claims that may arise due to COVID-19 or the Company’s response efforts; and the other risks and factors identified from time to time in the Company’s reports filed with the Securities and Exchange Commission. Additionally, projections are current estimates by the Company and actual results may differ materially from the projections.
About the Company
Dallas-based Sonida Senior Living, Inc. is one of the nation’s leading operators of independent living, assisted living and memory care communities for senior adults. The Company operates 75 communities that are home to nearly 7,000 residents across 18 states providing comfortable, safe, affordable communities where residents can form friendships, enjoy new experiences and receive personalized care from dedicated team members who treat them like family.
For more information, visit www.sonidaseniorliving.com or connect with the Company on Facebook, Twitter or LinkedIn.
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Contacts
Kimberly Lody (972) 308-8323, klody@sonidaliving.com
