Bloom Senior Living and Kandu Capital recently refinanced an Indianapolis, Indiana property that it acquired in October 2023 and already added value to it. Formerly owned and operated by Enlivant, Bloom at Kessler was in a distressed state when Bloom took over operations, with occupancy at 39% and an annual loss of around $1 million. It was purchased for $2.135 million, or just $35,000 per unit.
Since the purchase, Kandu and Bloom have spent just over $200,000 in capex and $600,000 in working capital, bringing occupancy to 84% and raising rates to $5,100 per unit. Revenues and EBITDA keep improving, as well, with stabilized EBITDA estimated between $1.0 million and $1.2 million. Using a cap rate of 8.0%, that would put the value between $12.5 million and $15 million.
Bloom/Kandu has now refinanced the property with $2.5 million of non-recourse debt from its regional lending partner, Commerce One. The plan is to take the loan out with agency debt, after additional stabilization. Part of that turnaround includes a rebrand, a new management team and adding the Medicaid Waiver program.
