Birmingham, MI-based Bloom Senior Living and Kandu Capital have extricated themselves from their skilled nursing facilities and mental health / psychiatric facilities to focus on their portfolio of independent living, assisted living and memory care communities, the companies announced Friday.

The companies are owned by the same family. Kandu Capital owns the properties and Bloom Senior Living operates them, Kandu / Bloom Principal Bradley Dubin told the McKnight’s Business Daily.

Kandu recently sold a 255-bed skilled nursing / special treatment program facility in Santa Ana, CA; a 45-bed skilled nursing / special treatment program facility in Los Angeles; and the leasehold in an 80-bed mental health rehabilitation center in Mission Viejo, CA. The collective sale price was $70.7 million on initial investments of approximately $9 million.

The sale of those properties followed the 2021 sale of four senior living communities for almost $37 million on initial investments of approximately $15 million. In aggregate, the companies said, Kandu has realized proceeds of almost $108 million since May 2021 on initial investments of approximately $24 million, with approximately $15 million of debt leverage.

“These are bittersweet transactions given [that] the unique facilities have been in our family for generations and we have an emotional connection to the counties we worked closely with for decades, the specialized programs we helped engineer and our dedicated staff who tirelessly served our patients,” the companies said in a press release. “These facilities have also been an instrumental part of our family story, laid the groundwork for Bloom Senior Living, and serve as the model for our next chapter.”

Dubin said that the principals decided that the time was right to turn their focus to the senior living portfolio.

“We think the fundamentals are getting better and better. Our portfolio is doing great, and we think we’re heading into the demographic boom,” Dubin said. “Rates are the best that [they] have ever been. Inflation is moderating. We like the fundamentals and because of what’s going on in the macro environment, we think there’s probably more opportunity to buy seniors housing than ever before.”

The senior living portfolio currently includes five properties in Indiana, South Carolina and Louisiana.

“While other people are playing defense and working out problems, we’re excited because we feel like we well-timed the sale of our nursing homes and we’re going to be focusing on seniors housing,” Dubin added.