Opus Bank’s Structured Finance division provides a $3,400,000 bridge loan to refinance and provide tenant improvement and leasing commission financing for a multi-tenant industrial property located in Upland, CA
Overview of Transaction
- The client is a professional local real estate investor that specializes in stabilizing industrial/warehouse properties.
- The client was seeking maximum flexibility in a bridge loan to negotiate lease extensions and renewals as well as pay off an existing high-interest rate loan from a private lender and cash out approximately $165,000.
- The client plans to convert the month-to-month tenants to longer term leases and will likely achieve higher rents, as current rents are below market.
Significance of Transaction
- The borrower was looking for an interest only option with maximum flexibility to either extend existing tenant leases, attract a credit tenant to replace existing tenants, or sell the property without incurring prepayment penalties.
Opus Bank's Role
- Opus Bank’s (“Opus”) Bridge Program was a good fit for the client's needs as the program allowed us to set aside tenant improvement and leasing commissions reserves, so the client could maximize their exit strategy.
- In addition, our program is interest only for the full term with no prepayment penalty. The total loan amount of $3,400,000 was 49.5% of the stabilized valuation.
- At closing, Opus provided a $3,250,000 initial funding which was 47.3% LTV, while the remaining $150,000 is held back at closing and can be released to fund tenant improvements and leasing commissions.