INDIANAPOLIS — Sonida Senior Living has acquired two recently renovated senior living communities in metro Indianapolis for approximately $12.3 million.
Core Redevelopment, a local multifamily developer and manager, acquired the communities in 2019 and immediately rebranded and repositioned the properties through interior and exterior renovations. Walker & Dunlop Investment Sales brokered the transaction.
The communities, Northfield Senior Living and Southfield Senior Living, include 157 independent living units and are located approximately 20 minutes outside of downtown Indianapolis near major highways, stores and restaurants. The assets complement Sonida Senior Living’s existing Indianapolis portfolio and will leverage the strength of the company’s local leadership team, according to Sonida.
“Adding these communities to our owned portfolio — which represents the company’s first acquisition since November 2016 — marks the company’s shift into the growth phase of our strategic plan following the recently closed $154.8 million capital raise and strategic investment from Conversant Capital,” says Kimberly Lody, president and CEO.
The properties recently underwent a significant refurbishment, and the company’s purchase price, equating to approximately $79,000 per unit, represents a significant discount to replacement cost, according to Sonida. Demographics in the surrounding market area include a growing 75+ population with above-average middle-income characteristics and unmet demand for this type of low-acuity senior living product.
The two assets have an in-place November 2021 occupancy of 55.5 percent, as compared to Sonida Senior Living’s independent living occupancy of 82.7 percent for the same period.