Opus Bank is pleased to announce it provided:
- Title: Bridge Loan
- Amount: $3,020,000
- Month: May
- Year: 2016
Opus Bank (“Opus”) provided a $3,020,000 acquisition and renovation bridge loan secured by a 12-unit multifamily project located in Belmont, California. The property is located in a desirable and mature residential neighborhood, but it was operating at below market rent levels. To bring rents to market, the property needed interior renovations.
The client’s business plan was to renovate the property at a cost of $520,000, which included $30,000 per unit for interior renovations. Opus sized the loan based on as-renovated operations and was able to deliver a bridge loan that matched the client’s business plan and also included maximum prepayment flexibility.
The acquisition was a reverse exchange, thus certainty of execution was critical. The loan closed well within the time constraint, with $2,500,000 advanced at closing. The funds to renovate the property will be advanced as needed and stabilization of the property is expected within 18 months. When fully funded, the total loan amount will represent 60% of total project costs.