Sonida Senior Living Finalizes $1.8 Billion Acquisition of CNL Healthcare Properties
Sonida Senior Living, Inc. (NYSE: SNDA) has completed its acquisition of CNL Healthcare Properties Inc., or CHP, a public non-traded real estate investment trust that owns a national portfolio of senior housing communities.
The complex, multi-step merger concludes a process for CHP that began in 2018 – when the company began exploring strategic alternatives. The transaction establishes Sonida as the eighth-largest owner of senior living assets in the United States.
The deal, valued at approximately $1.8 billion, creates a combined enterprise with an estimated enterprise value of roughly $3.3 billion.
The transaction was executed through a series of planned legal steps completed this week. On March 10, Sonida’s indirect subsidiary, SSL Sparti Property Holdings Inc., i.e., SNDA Merger Sub, purchased equity interests in certain CHP subsidiaries in exchange for SNDA common stock. Simultaneously, CHP adopted a formal plan of liquidation. On March 11, CHP merged directly into SNDA Merger Sub, ending CHP’s separate corporate existence.
Under the final terms, CHP shareholders received total consideration of $7.22 per share, consisting of $2.32 in cash and 0.1318 shares of Sonida common stock for each CHP share. The final value exceeded the originally estimated $6.90 per share because approximately 8 million fewer shares were issued than initially anticipated due to the transaction’s asymmetric collar mechanism.
The $7.22 value represented a premium to CHP’s most recent estimated net asset value of $6.64 per share, reported as of Dec. 31, 2024.
The acquisition more than doubles Sonida’s scale, expanding its portfolio to 153 owned communities with approximately 14,700 units across 35 states. The merger is expected to deliver an estimated 62% accretion in normalized funds from operations per share on a run-rate basis, and management expects to unlock $16 million to $20 million in annual corporate synergies within the first year, driven largely by eliminating CNL’s external advisory contract.
“This transaction represents an inflection point in our pursuit … as it more than doubles Sonida’s number of owned units while deepening and expanding our exposure to the most attractive geographic areas,” said Brandon Ribar, president and chief executive officer of Sonida.
Following the close, Michael Simanovsky, founder of Conversant Capital – Sonida’s largest shareholder – was appointed board chairman. Sonida also secured $930 million in permanent debt financing to support the deal and future growth initiatives.
When the deal was first announced in November 2025, Stephen Mauldin – then CEO, president and vice chairman of CNL Healthcare Properties – called it the culmination of CNL’s strategic alternatives process and an “exceptional outcome for CNL shareholders, residents and stakeholders.”
Sonida’s existing management team is leading the combined company. As part of the agreement, two CNL-designated individuals, including Mauldin, are expected to join Sonida’s board.
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