Sonida Senior Living will acquire eight senior living communities in the Southeast in a $103 million transaction, the Dallas-based owner-operator announced Thursday. The news follows the company’s previous announcement of the acquisition of nine other properties this year.
The latest transaction includes 555 assisted living and memory care units in South Carolina and Florida, expanding the company’s footprint in those states. Sonida said the communities primarily are “strategically located in attractive submarkets” with high growth: Jacksonville, Orlando and Daytona Beach, FL, and Hilton Head, Charleston and Florence, SC. The average age of the communities is five years, compared with an average age of 19 years for comparable inventory within a 10-mile radius, according to Sonida.
“With Sonida’s multi-faceted sourcing channels, we continue to identify accretive investment opportunities and firmly execute on our focused external growth strategy,” President and CEO Brandon Ribar stated Thursday. “With this planned acquisition, Sonida will further broaden its high-quality and regionally focused real estate.”
The purchase price, which works out to $185,000 per unit, “reflects a significant discount to the company’s estimate of replacement cost,” the company said. The portfolio’s in-place occupancy is approximately 83%, with an average revenue per occupied room of more than $6,000.
Sonida Senior Living said it expects the transaction to close in the late third quarter or early fourth quarter. The deal will bring the organization’s total operating portfolio to 91 communities.
The company said it plans to fund the acquisition via a public offering of 4.3 million shares of its common stock, the price of which is $27 per share. The remaining net proceeds from the offering will be used for other general corporate purposes.
