We learned last month of Sonida Senior Living’s first acquisition since November 2016, when it purchased two independent living communities around Indianapolis, Indiana. But, a few more details have come out on the deal since then.
First, it was revealed that Walker & Dunlop Investment Sales’ Alex Vice was the lead broker on the deal. He represented the seller, Core Redevelopment, a local multifamily developer/manager that acquired the communities (in distress) in 2019. Core embarked on a significant renovation to the community’s interior and exterior in addition to rebranding and repositioning the communities. Totaling 157 units, the IL communities were not well occupied at the time of that purchase, so the pandemic certainly did not help things. Occupancy had recently increased to the mid-50s, but Sonida was able to purchase the communities for $12.3 million, or $78,300 per unit, at a discount to replacement cost. Sonida expects that upon stabilization, the assets could generate a 9% unlevered NOI yield.
The purchase marks the beginning of a growth phase for Sonida, following the $154.8 million capital raise and strategic investment from Conversant Capital.
