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.