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.