Sonida Senior Dwelling, a number one senior residing owner-operator with 77 properties throughout 18 states, has refinanced a 10-asset portfolio with an $80 million bundle that features as much as $50 million of extra capital.
The property weren’t recognized by title or location. The properties comprise 941 models with a mixture of impartial residing, assisted residing and reminiscence care models in 5 states.
The consolidation and refinancing of assorted debt obligations was accomplished by Greystone’s Senior Housing Capital Markets group, led by Cary Tremper, on behalf of Sonida. The preliminary time period mortgage of $80 million was offered by a regional financial institution and has a four-year maturity with an non-obligatory one-year extension. It does embody as much as $50 million of extra capital, with an uncommitted $40 million accordion to fund Sonida’s future development initiatives. The time period mortgage will scale back the corporate’s complete debt by $38.5 million and reduces the blended curiosity for the ten communities by roughly 63 foundation factors, in keeping with Sonida. It additionally contains future alternatives for extra, performance-based rate of interest reductions and addresses all debt maturities by means of mid-2024.
Tremper stated in a ready assertion Greystone serves as an advisor to its purchasers for his or her capital wants and a companion to seek out the very best answer to satisfy short-term or long-term targets, notably with as we speak’s generally unstable market and rising rates of interest.
Extra Sonida Strikes
Kim Lody, president, CEO & director of Sonida, stated in a ready assertion the refinancing bundle positions the corporate, previously generally known as Capital Senior Dwelling, for future development. The corporate rebranded as Sonida Senior Dwelling in November, shortly after closing on a $154.8 million transaction with Conversant Capital. At the moment, Lody stated in ready remarks the infusion of capital from Conversant would enable the corporate to handle instant liquidity wants and assist pave the best way for future development. The corporate’s communities at the moment serve almost 7,000 residents.
Late final 12 months, Sonida Senior Dwelling introduced an enlargement of its relationship with Ventas by including three managed communities in Arkansas as of Dec. 1, 2021.
In February, Sonida acquired two lately renovated senior residing communities within the Indianapolis marketplace for roughly $12.3 million. Northfield Senior Dwelling and Southfield Senior Dwelling embody 157 impartial residing models. Situated about 20 minutes exterior downtown Indianapolis, Sonida stated the brand new acquisitions would complement the corporate’s current Indianapolis portfolio and leverage the power of the native management group.
The properties lately underwent a major refurbishment and the acquisition, which works out to be about $79,000 per unit, represents a major low cost to alternative value. The property have an in-place November 2021 occupancy of 55.5 %, as in comparison with Sonida Senior Dwelling’s impartial residing occupancy of 82.7 % for a similar interval. The corporate expects to ship NOI development by means of lease up and extra resident providers.
The acquisitions have been the corporate’s first since November 2016 and signify a shift into its development plan following the $154.8 million capital elevate and strategic funding from Conversant Capital.