Bloom Senior Living has overseen a tremendous occupancy recovery across its seniors housing assets, which we profiled last week, and its family office owner Kandu Capital have decided to focus on that sector while divesting their remaining legacy skilled nursing and mental health/psychiatric facilities located throughout California.
The sales included a 255-bed skilled nursing/special treatment program facility in Santa Ana, the leasehold in an 80-bed mental health rehabilitation center in Mission Viejo, and a 45-bed skilled nursing/special treatment program facility in Los Angeles. The collective purchase price was $70.7 million on initial investments of approximately $9 million. These sales also follow the strategic sale of four seniors housing communities in 2021 for nearly $37 million on initial investments of approximately $15 million.
Like the seniors housing sales, the California facilities had a modest ~$6 million mortgage, which is consistent with Kandu’s conservative capital structures. In aggregate, Kandu has realized proceeds of nearly $108 million since May 2021 on initial investments of approximately $24 million with around $15 million of debt leverage.
