Opus Bank is pleased to announce it provided:
- Title: Bridge Loan
- Amount: $3,300,000
- Month: August
- Year: 2016
Opus Bank (“Opus”) provided a $3,300,000 bridge loan to finance the acquisition and renovation of an existing 29-unit multifamily property. Current rents at the property are below market, and it is in need of renovation. The business plan includes extensive interior and exterior renovations, then taking rents to market rates.
The sponsors are value-add investors specializing in the multifamily market. They previously purchased the adjacent multifamily property utilizing an Opus Income Property Banking loan. When the subject property became available, the sponsors recognized the need for an extensive renovation budget in order to achieve the business plan.
Opus was able to look past the current below-market income, and underwrite the projected, stabilized income at the property. The initial funding was $2,125,000, or 75% of the purchase price. Future funding of $1,175,000 is available via monthly draws for the renovations and an interest reserve. When fully funded and stabilized, the loan will represent approximately 81% Loan-to-Cost and 63% Loan-to-Value.