Opus Bank Structured Finance division Provided a $3.7 million Bridge Facility for the Purchase and Renovation of a 30 Unit Multifamily Asset in Santa Rosa, CA
Overview of Transaction
The Borrower purchased a 30 unit multifamily asset in Santa Rosa, CA.
Opus Bank provided the borrower with a $3,728,000 variable rate, interest only bridge facility for the renovation and stabilization of the property.
Despite being 96% occupied at closing of the loan, the property was operating at below market rates and in need of renovation.
Significance of Transaction
Based on the strength of the guarantors and their proven ability to carry out their proposed business plan, the financing provided by Opus included a two tiered burn-off of the recourse conditional on the improved performance of the asset.
Allowed for flexibility of maturity with two 6 month extension options.
Demonstrates Opus Bank’s willingness to lend on value-add opportunities in secondary markets to experienced real estate entrepreneurs.
Opus Bank's Role
Opus Bank allowed for the total commitment to be sized to the future, post-rehabilitation property value, recognizing the borrower’s ability to bring the asset to market standards.