MICHIGAN — Northland Networks, a debt placement agent that finances senior living projects through a network of community banks, has arranged financing for a portfolio of three skilled nursing facilities in Southeast Michigan.
The communities total 250 beds, which the loan represents a 65 percent loan-to-value ratio.
“Community banks across the country are sitting on record sums of cash with nowhere to put it,” says Seth Kahn, managing director of Northland Networks. “Participating in senior living loans is an attractive option for many of these banks who, in the past, have had minimal exposure to this asset class. Such loans offer strong yields and diversification benefits.”
The portfolio was acquired by The Portopiccolo Group, a family-owned investment management firm. Portopiccolo currently owns more than 100- skilled nursing facilities and totaling over 12,800 licensed beds.
Neil Gamss of Housing & Healthcare Finance also facilitated with the project’s financing. The amount of the loan was not disclosed.