Northland Networks, a debt placement agent that finances senior living projects through a large network of community banks, arranged acquisition financing for a portfolio of three skilled nursing facilities in southeast Michigan with 250 beds. The loan represents a 65% loan-to-“as is” value. The attractive terms of the loan are indicative of community banks’ swelling cash deposits amid COVID-19 stimulus. Participating in senior living loans is an attractive option for many of these banks who have had minimal exposure to this asset class in the past, as such loans offer strong yields and diversification benefits.
The Portopiccolo Group, a family-owned investment management firm, acquired the portfolio. Portopiccolo currently owns over 100 skilled nursing facilities and more than 12,800 licensed beds. Its business model is to acquire distressed assets and other value-add projects and turn them profitable by employing an active approach to ownership and value creation. Neil Gamss of Housing & Healthcare Finance also assisted with the project’s financing.
