In an effort to begin large-scale growth under a new name, Sonida Senior Living has acquired two independent living communities in the Indianapolis MSA for $12.3 million. Totaling 157 units, Northfield Senior Living (built in 1982) and Southfield Senior Living (built in 2002) recently underwent significant renovations. But the approximate $79,000 per-unit price tag represents a discount to replacement cost.
The two communities 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. However, this is primarily the result of operational disruptions from the renovations projects taking place before the onset of the pandemic. But hopefully, amid the labor shortage and every other community looking to fill units, occupancy can rebound quickly. Sonida expects to deliver NOI growth through that lease-up and additional resident services with the assets projected to generate a 9% stabilized, unlevered NOI yield. The seller was not disclosed, and Sonida expects to close the deal in the first quarter of 2022.
