- Sonida Senior Living will acquire CNL Healthcare Properties for $1.8B, forming the eighth-largest senior housing company in the US with over 14K units across 153 communities.
- The deal marks the largest senior housing transaction since 2021 and is expected to close in the first half of 2026.
- This merger reflects the sector’s recovery, with rising rents and occupancy driven by aging demographics and limited new construction.
Merger Milestone
Dallas-based Sonida Senior Living will acquire CNL Healthcare in a $1.8B deal, forming a senior housing giant, reports WSJ. The transaction—expected to close in early 2026—will result in a combined company operating 153 communities across 26 states. These communities will offer independent living, assisted living, and memory care services.
Sector Revival
The senior housing industry, once hit hard by the pandemic, is staging a major comeback. As baby boomers approach their 80s, demand is rising. At the same time, new development has slowed to historic lows. This imbalance has boosted occupancy and rents—some operators have pushed increases of up to 8% annually.
According to Green Street, construction starts are near all-time lows, while Newmark reports $13B in deal activity through Q3 2025—a 67% increase year-over-year.
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Sonida’s Comeback Story
Sonida’s trajectory mirrors the broader sector. Formerly Capital Senior Living, the company nearly collapsed during the pandemic but was rescued by a $154.8M equity investment from Conversant Capital. That investment helped restructure debt and reposition the business for growth.
Since then, Conversant has added another $100M. It will contribute an additional $100M as part of the CNL deal, bringing its stake in the combined firm to around 30%.
Over the past 18 months, Sonida has quietly expanded, acquiring 23 communities totaling more than 2,500 units. The CNL merger will significantly accelerate that growth.
Inside The Deal
CNL Healthcare is a non-traded REIT formed more than a decade ago to invest in senior housing and healthcare assets. It owns about 70 properties with roughly 8K units. Shareholders will receive $6.90 per share in cash and stock under the proposed terms. This is down from the $10 per share price at launch in 2011, though they have received dividends and a $2 special distribution.
Looking Ahead
This merger positions Sonida to capitalize on a booming demographic trend and a tightening supply of senior housing. With more baby boomers seeking care and fewer facilities being built, consolidation and strategic expansion like this may become the new norm in senior living.
Why It Matters
As the US population ages, demand for senior housing is accelerating, but supply isn’t keeping pace. Strategic mergers like this allow operators to scale quickly, meet growing demand, and improve profitability in a sector undergoing rapid transformation.
