Opus Bank is pleased to announce it provided:

Title: Acquisition Financing
Amount: $3,600,000
Month: July
Year: 2015

Acquisition Financing

Opus Bank’s Income Property Banking division provides $3,600,000 of acquisition financing and quickly closed on a reverse 1031 exchange for the purchase of a 14 unit townhouse style building in Tarzana, CA

Overview of Transaction

  • An income property investor was looking for a lender who could quickly execute an LOI and provide certainty of execution for a reverse 1031 exchange, which involved the purchase of a three-story, townhouse style building with 14 units built in 2009.

Significance of Transaction

  • The borrower learned that their current lender could not perform on this reverse 1031 exchange. The borrower had to make a decision whether to commit to the transaction and place a non-refundable deposit before the end of the day.
  • With the source of financing unknown at the time, the borrower was considering withdrawing his offer to purchase the building.

Opus Bank's Role

  • Opus’ Income Property Banking team was contacted and immediately engaged internal credit, counsel, and Opus' reverse 1031 accommodator.
  • As this was the borrower’s first reverse 1031 exchange, Opus’ IPB banker introduced the borrower to the accommodator and was able to provide a quick primer on the process. At the same time, the Opus deal team quickly began analyzing the request and working with credit to issue an LOI.
  • The approval to issue the LOI was received a couple hours later, allowing the borrower to proceed with the transaction.
  • The loan closed on time and as expected.

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