Kandu Capital, LLC and Bloom Senior Living Redeploy Capital With Indiana Expansion

Kandu Capital, LLC and Bloom Senior Living Announce Indiana Expansion by Acquiring Two More Assisted Living and Memory Care Communities Out of Receivership

Birmingham, Michigan (October 2, 2023) - Kandu Capital, LLC, the real estate and health care-focused family office, and its operating company, Bloom Senior Living (collectively, "Bloom"), announced the acquisition of two senior living communities in Indianapolis out of a Fannie Mae receivership. With today's move, Bloom expands its Indiana footprint to five communities and its diversified, growing portfolio of Independent Living, Assisted Living and Memory Care communities throughout the United States.

After strategically divesting $110 million of Skilled Nursing and Behavioral Health assets at peak pricing up to $225,000 per bed, Bloom -- leveraging its strong balance sheet, operating experience and the current market dislocation, has opportunistically redeployed capital into seniors housing at $30,000 per unit by running the same playbook that worked for the family during past down cycles. Bloom is capitalizing on new distressed opportunities while its current portfolio is outpacing pre-pandemic levels and industry fundamentals are strengthening. With accelerating demand, slowing inventory growth, pricing power, moderating inflation and high absorption suggesting a historic demographic shift underway, Bloom expects positive trends to only continue and seniors housing to head above the peak occupancy, profitability and valuation levels of 2014/2015.

Bradley Dubin, a Bloom Principal, states "the current landscape of volatility, banking sector challenges and tighter, more expensive credit markets is creating significant opportunities for well positioned cash buyers to pursue quality assets, at trough pricing, that can benefit from a regional approach and strong industry tailwinds as we head into the next seniors housing cycle. These latest acquisitions check those boxes and follow our strategy of acquiring well-located, value-add communities that fit within our existing structure. With our current Indiana portfolio operating above 97% occupancy with record RevPOR and net operating income, along with high customer and associate satisfaction, low associate turnover and near perfect state surveys, we're excited to add another 121-units of Assisted Living and Memory Care in the stable Indianapolis market which not only has strong demographics and an increasing demand for high quality care, but complements our existing Indiana assets."

The Bloom approach and story is personal as much as professional. The company was inspired after its principals experienced the challenge of finding the right home for their grandmother when she began suffering from Alzheimer's. Bloom offers a modern, lifestyle approach to healthcare that caters to the needs of each individual and a mission that is simple yet aspirational: to help residents flourish. Bloom residents continue living full lives by enjoying their favorite activities while discovering new ones, and blooming into their best selves through learning, growth and discovery.

With this differentiated mission, Bloom identifies properties that can be re-positioned to help more seniors. Scott Kantor, a Bloom Principal overseeing operations, indicates "we have a thoughtful plan ensuring these new Bloom communities -- previously owned by a large national provider -- is consistent with our unique 'family owned and operated' operating style, mission, Bloom Beliefs, culture and brand." The community names, as part of this process, will be changed from Willow Lake Place and Kesslerwood Place to Bloom at Willow and Bloom at Kessler. Mr. Kantor adds "Bloom will build upon its reputation in Indiana and incorporate Five Star Customer Service and Dining Programs, signature Life Enrichment and specialized Memory Care, as well as provide personalized service, superior resident-centered health care and hundreds of personal touches that make our family communities so special." Mr. Kantor further reports "while these assets are in excellent condition, Bloom will enhance the lives of its residents by making the communities an even better home with physical improvements." Bloom will also continue to offer a full continuum of care (licensed by the State of Indiana), so residents can age in place as they require more care.

Bloom currently owns and operates three licensed Assisted Living and Memory Care communities on the East and West sides of Indianapolis, Bloom at German Church and Bloom at Eagle Creek, and Kokomo, Bloom at Kokomo. According to Bloom's Area Director, James Kesler, "we intend to take our proprietary 'Bloomprint' that made our Indianapolis and Kokomo communities so successful and replicate it at Bloom at Willow and Bloom at Kessler." He added "in addition to the Bloom at German Church and Eagle Creek options on the East and West sides of Indianapolis, Bloom at Willow and Bloom at Kessler will be able to offer families in the Lake Kesslerwood and College Park neighborhoods, and adjacent areas, senior care options on the North and Northeast sides of Indianapolis." With a total of 314-units throughout Indianapolis and Kokomo, Bloom has a strong and growing presence throughout the State that can help our Indiana seniors bloom.

Tony Kantor, a Bloom principal, reports "the communities were purchased, all cash, for $25,000 and $35,000 per unit. Our family continues to acquire exceptional assets at reasonable valuations, with conservative capital structures, which permit us to create long term value while providing best in class care to our residents at intentionally affordable pricing. This acquisition strategy is consistent with our mission of being able to help seniors bloom by affording to live longer better."

Blueprint, a real estate advisor in seniors housing and care, represented the seller and buyer on this transaction. Honigman LLP, a business law firm based in Michigan, served as legal advisors to Bloom on the aforementioned transactions.

Mission Statement

Bloom Senior Living is a family-owned and operated company that is dedicated to providing personalized service and premium care for seniors. Since 1965 we’ve gone beyond offering just safety and comfort; we create living environments where residents are given the tools, resources and encouragement to flourish as human beings.

About

Kandu Capital, LLC:

Kandu is a family office that has more than five decades of experience acquiring and developing a diversified portfolio of health care and commercial real estate assets, along with other private and alternative investments, throughout the United States. To learn more, read here.

Bloom Senior Living:

Bloom operates senior living communities and provides a continuum of services including Independent Living, Assisted Living and Memory Care. To learn more, read here.

Media Contact

Bradley Dubin

Principal, Kandu Capital, LLC & Bloom Senior Living

Click Here to Send an E-Mail

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