Kandu Capital, LLC, a real estate and health care-focused family office, and its seniors housing operating company, Bloom Senior Living, refinanced its 78-unit assisted living/memory care community in Kokomo, Indiana.
Bloom at Kokomo was acquired in May 2019 from Capital Senior Living Corporation (now Sonida Senior Living) for $5 million, or $64,000 per unit. At the time, occupancy was 80%, revenue was just over $3 million, and the community was losing money. However, Bloom management projected EBITDA could grow to at least $750,000. And we profiled the turnaround late last year in a story called “A Successful Turnaround, Twice.”
Long story short, in just over three years and during the pandemic, Bloom successfully stabilized the community, bringing occupancy and revenue to 96% and approximately $4.3 million, respectively. Also, the community reported $1 million of cash flow and over $750,000 of EBITDA. With that success, and added value, Kandu is now refinancing the community with CommerceOne Bank, which is based in Birmingham, Alabama, and will be a new relationship for Kandu. The mortgage came out to about 35% loan-to-value, but no other details on the refinance were disclosed.
