Opus Bank is pleased to announce it provided:
- Title: Bridge Loan
- Amount: $11,000,000
- Month: February
- Year: 2016
Opus Bank (“Opus”) provided an $11 million funding commitment on a 240-unit multifamily property subject to a ground lease in Westminster, CA.
The transaction was brought to Opus through a non-bank lender who had recently closed a bridge loan on the property. Although the operating cash flow had been stable for many years, a base rent reset provision would substantially increase the ground rent within 12 months. This change could potentially make the existing debt more than the property could support based on the adjusted net operating income. In addition, the ownership of the land recently changed hands, opening up the opportunity for a renegotiation of the ground lease.
While the total loan amount exceeded Opus Bank’s underwriting guidelines, Opus worked with the other lender in bifurcating a total of $13 million in financing, of which Opus agreed to hold an $11 million A-piece. Proceeds from the new loan went to refinance the maturing mortgage loan, with a commitment of future advances to the borrower contingent upon the successful renegotiation of specific ground lease terms.