Sonida Senior Living, Inc. (Sonida), a prominent owner, operator, and investor in senior living communities, recently announced the successful completion of a key acquisition, continuing to follow its inorganic and accretive growth strategy. This strategy focuses on expanding and enhancing Sonida’s portfolio, with the aim of leveraging operational scale and efficiencies to offer superior services to its residents.
Asset Acquisition to Strengthen Portfolio
On December 31, 2024, Sonida finalized the acquisition of a senior living community in Cincinnati, Ohio. This upscale asset, which was completed in 2021, faced foreclosure and had yet to open its doors due to financial troubles with the original construction borrower. Sonida secured the property for $16.3 million, or approximately $198,000 per unit—significantly lower than the original construction cost. This price reflects Sonida’s commitment to acquiring high-quality assets at attractive discounts to replacement cost.
The newly acquired community includes 82 units, consisting of 50 Assisted Living and 32 Memory Care spaces. The strategic location of the property, adjacent to Sonida’s existing Wellington at North Bend Crossing community, opens up a unique densification opportunity. By combining both properties, Sonida now operates a two-asset campus with 203 units. This acquisition enables the company to offer a full continuum of care and a broader range of services to residents, while also maximizing operating scale and achieving cost efficiencies. Additionally, this purchase enhances Sonida’s presence in the greater Cincinnati market, increasing its total assets in the region to five.
The transaction was funded by $18.25 million of seller-financing, which includes $2.0 million earmarked for capital expenditures, primarily for furniture, fixtures, and equipment (FFE). The facility is expected to open in mid-2025. The non-recourse mortgage carries an 84-month term, with an initial 24-month interest waiver and a fixed 3% interest-only rate thereafter.
Proactive Debt Management and Future Strategy
Sonida’s commitment to proactive debt management was demonstrated by the recent completion of a maturity extension for 18 of its individual mortgages. These mortgages, totaling $220.1 million as of September 30, 2024, were extended from December 1, 2026, to January 1, 2029. To facilitate this extension, Sonida paid down $2 million in principal at closing and has committed to additional principal payments over the next few years. These payments will reduce the debt further, with scheduled paydowns in November 2025, 2026, and 2027. The loans are interest-only through their maturity and carry a blended interest rate of 4.35%, which will remain unchanged for the duration of the loans.
As a result of these adjustments, Sonida faces no significant debt maturities until 2027, further stabilizing the company’s financial outlook and enhancing its capacity for future growth and investment.
Leadership’s Vision for Continued Growth
Brandon Ribar, President and CEO of Sonida, emphasized the company’s strong pipeline and ongoing focus on creative deal structuring as a means of fueling continued growth. He noted, “Sonida ended the year with two additional transactions that position the company for success in 2025 and beyond. Through the expansion of our best-in-class operating platform and strategic investments in high-quality communities, we are achieving accretive and sustainable growth with resident care at the core of our mission.”
Ribar further highlighted that Sonida’s strategy hinges on operational upside in the current portfolio, a healthy pipeline of acquisition targets, and an absence of immediate debt concerns. He expressed confidence in the company’s ability to continue executing on its growth strategy and further expand its presence in key markets.
Acquisition Summary Table
| Acquisition Details | Amount | Unit Price | Total Units | Property Type | Location | Transaction Date | Capital Expenditure |
|---|---|---|---|---|---|---|---|
| Senior Living Community (Cincinnati, OH) | $16.3 million | $198,000 per unit | 82 units (50 AL, 32 MC) | Assisted Living/Memory Care | Cincinnati, OH | December 31, 2024 | $2.0 million |
| Existing Wellington at North Bend Crossing | N/A | N/A | 121 units | Assisted Living/Memory Care | Cincinnati, OH | Ongoing | N/A |
| Total Combined | N/A | N/A | 203 units | Full Continuum of Care | Cincinnati, OH | N/A | N/A |
AL = Assisted Living; MC = Memory Care
About Sonida
Sonida Senior Living, based in Dallas, is a leading provider of independent living, assisted living, and memory care services for seniors. Asset With a portfolio of 94 communities across 20 states, Sonida serves more than 10,000 residents. The company is dedicated to offering Asset compassionate care, innovative services, and engaging programs in communities that prioritize the well-being of residents. In addition to its ownership stake in 81 communities, Sonida manages 13 properties on behalf of third-party investors, ensuring that its senior living services remain of the highest standard.
By continuing Asset to acquire valuable assets and strategically manage its debt, Sonida is well-positioned to drive sustained growth and deliver long-term value for its stakeholders.
