Opus Bank is pleased to announce it provided:
- Title: Bridge Loan
- Amount: $$7,775,000
- Month: March
- Year: 2017
Opus Bank (“Opus”) provided a $7,775,000 bridge loan to finance the acquisition and renovation of an existing 106 unit apartment property in Tacoma, Washington. The Sponsors are experienced value-add investors and property managers, specializing in the Puget Sound multifamily market. This is a well located property in a stable and improving neighborhood.
The Sponsors were returning clients of Opus’ Income Property Banking division. The property was underperforming in the market and in need of renovation. Their business plan included an extensive exterior renovation, plus an interior renovation of all units, then bringing rents to market rates. The Sponsor’s experience in renovating properties, plus their hands-on management ability were a good match with this opportunity.
Opus successfully closed the loan on-time, which was critical given it was a 3rd party acquisition. Opus was able to look past the current income and underwrite the projected, stabilized income at the property. The initial funding was approximately $6,670,000, which was 75% of the purchase price. Future renovation funding of $1,105,000 is available via monthly draws. When fully funded and stabilized, the loan will represent approximately 77% Loan to Cost and 59% Loan to Value.