Last week we disclosed that Bloom Senior Living and its affiliate Kandu Capital hit a home run with its sale of a 94-unit assisted living and memory care community in St. Petersburg, Florida. They purchased it for $5.5 million in 2017 and just sold it for $12.5 million. Not too shabby.
Well, it looks like they did it again, this time selling a 91-unit assisted living community in Lakewood, Ohio for $11.8 million, or nearly $130,000 per unit. While that price per unit will not be breaking any records, Bloom had purchased the community in 2010 for just $3.1 million out of the Sunwest Management bankruptcy.
Do the math, and that is a 380% return on the price 11 years ago. Factor in the debt and the return on equity invested was even better. Yes, the hold period was 11 years, but it is hard to make that kind of money n any time period, and they bought it coming out of the Great Recession and sold it coming out of the Great Pandemic. The annual return on total capital was 13%, but when the debt is factored in, the annual return on equity could be between 25% at the low end and unlimited if they financed the entire amount. If the St. Pete deal was a home run, this was a grand slam. Maybe a gold medal.
Alex Vice of Walker & Dunlop represented the seller, and The Nathanson Group PLLC served as legal counsel to Bloom on both the Ohio and Florida sales.
