Opus Bank is pleased to announce it provided:
- Title: Bridge Loan
- Amount: $10,500,000
- Month: February
- Year: 2016
A family-run investment company doing business in corporate form was looking to re-invest exchange proceeds and had identified multifamily properties located in Washington and Oregon. The properties needed only modest immediate improvements and the client desired to do more significant renovations under the HUD 223(f) long-term fixed rate program. The transaction was complicated due to the time constraint to execute the tax deferred exchange. Additionally, the properties were owned by two unrelated parties living in different states and it was the client’s desire to close on the two properties concurrently.
With the planned renovations, our client felt that the properties would fit its long-term hold criteria, the client wanted to access the HUD financing as quickly as possible. Unfortunately, there wasn’t enough time to meet the terms of the Purchase & Sale Agreements, preserve the tax deferred exchange, and close the HUD loan(s) as acquisition financing.
The mortgage broker knew that Opus Bank’s (“Opus”) bridge lending program could provide a closing fast enough to meet the terms of the Purchase & Sale Agreement and preserve the tax deferred exchange. With a typical HUD loan often taking up to six months to close, Opus’ Bridge structure provided a timely and cost effective solution. Opus structured a one-year, interest only loan that was open to prepayment at par in six months.