FLORIDA and SOUTH CAROLINA — Sonida Senior Living Inc. (NYSE: SNDA), a Dallas-based owner, operator and investor, has agreed to acquire eight senior living communities in northern Florida and South Carolina.
Totaling 555 units of assisted living and memory care, Sonida will pay $103 million for the portfolio. The seller was not disclosed.
“With this planned acquisition, Sonida will further broaden its high-quality and regionally focused real estate portfolio with newer vintage communities in mid-to-large metropolitan areas with favorable growth prospects,” says Brandon Ribar, president and CEO.
The eight communities are located primarily in high-growth primary and secondary metropolitan areas such as Jacksonville, Orlando and Daytona Beach in Florida, and Hilton Head, Charleston and Florence in South Carolina.
The portfolio follows Sonida’s acquisition strategy, which aims to further upgrade and modernize its portfolio through densification across its current geographic footprint to fully leverage operating scale and efficiencies. The portfolio, with an average asset age of five years, compares to an average asset age of 19 years when looking at comparable inventory within a 10-mile radius. The purchase price of $185,000 per unit, reflects a significant discount to the company’s estimate of replacement cost.
The portfolio’s in-place occupancy is approximately 83 percent with average revenue per occupied room (RevPOR) of more than $6,000. Sonida anticipates that multi-year stabilization of net operating income margin should result in an accretive effective cap rate.
Upon closing, the sale will bring Sonida’s operating portfolio to 91 communities. The transaction is slated to close before the end of the year.