Sonida Senior Living Adds 8 Communities in Two Joint-Venture Agreements

Sonida Senior Living (NYSE: SNDA) has announced the addition of eight new senior living communities as part of two joint-venture agreements.

The Dallas-based senior living operator on Tuesday said the communities were added in May and July. All told, the company is adding 790 units of independent, assisted living and memory care units.

The JVs bring the company’s portfolio count to 70 communities across the U.S., and represent the latest move in “a comprehensive strategy to judiciously grow Sonida’s portfolio through creative deal structuring, expand its best-in-class operating platform and ultimately achieve attractive returns upon asset stabilization,” according to President and CEO Brandon Ribar.

Advertisement

“The acquired assets consist of exceptional private-pay communities, with newer vintage construction and/or material renovations within the last 10 years and are in mid-to-large metropolitan areas with favorable growth prospects,” he said in a press release. “We continue to leverage our sourcing channels which enable us to identify compelling investment opportunities and drive long-term inorganic growth and value creation for our shareholders.”

Ribar had previously noted during an earnings call in May that the company was in “growth mode” in the second quarter of the year.

In one transaction with Palatine Capital Partners, Sonida recapitalized four senior living communities at an implied valuation of $34.7 million, or $107,300 per unit, in San Antonio and Austin, Texas; and Atlanta. The latter represents a new market for Sonida, according to the company.

Advertisement

Sonida, which is 51% owner in the joint venture, contributed $6.4 million cash equity for the transaction. Other existing lenders in Sonida’s rolodex provided about $21.8 million of mortgage debt.

In another joint venture with KZ Family Ventures, Sonida is adding four relatively newly built communities in Ohio, Missouri and Kentucky.

The joint-venture partners acquired the portfolio for $64 million, representing less than $140,000 per unit. Sonida, which owns about a third of the joint venture, contributed $22.3 million in cash equity to close the transaction. The operator expects to get a “majority portion” of the investment, “assuming moderate leverage post-close.”

Companies featured in this article: