Opus Bank is pleased to announce it provided:
- Title: Bridge Loan
- Amount: $2,580,000
- Month: April
- Year: 2016
Opus Bank (“Opus”) provided a $2,580,000 acquisition and renovation bridge loan for two multifamily properties located in San Diego, totaling 20 units. The first property was owned “free & clear” by the sponsor and the second property was a time-sensitive acquisition. Opus structured a single loan and utilized the existing equity in the first property to help facilitate the acquisition of the second property.
The properties are well located infill apartments in strong and improving neighborhoods. The properties both offered substantial upside due to in-place rents that were below current market rents. To capture the higher market rents, the business plan included an interior renovation of all units, plus substantial exterior upgrades. Opus was able to look past the current income and underwrite to the projected, stabilized income of each property. Opus has the local knowledge needed to understand this opportunity and structure the appropriate loan.
Certainty of execution was critical for the sponsor, given the tight timeframe of the acquisition. Opus successfully closed the loan within the required timeframe, and provided both the initial funding plus the future funding the sponsor needed to achieve their business plans for the properties.