Opus Bank is pleased to announce it provided:
- Title: Bridge Loan
- Amount: $3,380,000
- Month: July
- Year: 2016
Opus Bank (“Opus”) provided a $3,380,000 loan to a Tenant in Common (“TIC”) borrower to finance the acquisition and renovation of a 22-unit multifamily property in Los Angeles, CA. The client saw an opportunity to add significant value to the property by performing renovations and increasing rents relative to the market. Two of the main challenges to this transaction were the high leverage request relative to purchase price and a short closing timeline with a TIC borrowing structure.
The client owns other properties in the area and has extensive construction and value-add investment experience in the surrounding markets. The client estimated a $193,600 renovation budget for full kitchen and bathroom remodels, new hardwood floors, new appliances, interior and exterior paint, new landscaping, and a new entry gate. Opus had the local expertise to understand the desirability of the asset in that submarket. Additionally, a $90,000 interest reserve was structured to provide the client operating flexibility.
Opus provided proceeds based on an “as stabilized” pro-forma post renovation and lease-up. The loan was structured with capital renovation holdbacks, contingency amounts, and interest reserve. The total loan amount of $3,380,000 is 80% of the purchase price. At closing, Opus funded $3,090,800 with multiple advances throughout the loan term. When fully funded, the total loan amount will represent 74% of total project costs.