Sonida Senior Living acquired two seniors housing communities through separate transactions. In May, Sonida acquired a memory care community in Tarpon Springs, Florida. It was built in 2017 and features 64 units. This community complements Sonida’s recently acquired central Florida assets, bringing its Florida portfolio total to eight assets. The company will implement its Magnolia Trails personalized memory care services to activate the community while leveraging its regional sales and marketing support to drive occupancy.
The purchase price was $11 million, or $171,900 per unit, funded with cash on hand and a new $9 million non-recourse mortgage from the asset’s existing lender. The loan has an initial three-year term with two one-year extensions and carries an interest rate of SOFR+0%, which will step up by 1% in years two and three and end at SOFR+3% if Sonida elects the extension. The company expects a double-digit cap rate upon stabilization.
At the start of this month, Sonida acquired an assisted living/memory care community in Alpharetta, Georgia. It was also built in 2017 and comprises 64 AL and 24 MC units. This community is situated near Sonida’s recently acquired Atlanta assets, further leveraging operating scale through cost efficiencies, local resource pooling and enhanced marketing presence. The acquisition brings the company’s greater Atlanta portfolio total to four assets.
The purchase price was also $11 million, or $125,000 per unit, funded with cash on hand and proceeds from its senior secured revolving credit facility. Sonida expects a double-digit cap rate upon stabilization.
