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.