Opus Bank is pleased to announce it provided:
- Title: Bridge Loan
- Amount: $4,900,000
- Month: June
- Year: 2016
Opus Bank (“Opus”) provided a $4,900,000 bridge loan to finance the acquisition of a newly constructed, 12-unit multifamily property in the vibrant neighborhood of Mid-Wilshire in Los Angeles, CA. The property offers a rooftop deck, elevator, and on-site controlled-access garage with 26 parking spaces.
The client is a real estate investor with extensive experience investing in Southern California and had an opportunity to acquire a newly constructed multifamily property. Although the property is newly built, the client budgeted an additional $110,000 to further upgrade the units with high-end appliances, flooring and rooftop deck finishing. The client anticipated a three month absorption period as the property is located in an infill submarket with low vacancy and significant demand for newer, high-end rental housing.
Opus structured an interest reserve, which enabled the client to focus on the lease up and upgrading the finishes and appliances while not having to make interest payments until the property is stabilized. The client made a deposit into a restricted account at Opus to be used as interest reserve, providing the maximum proceeds at closing. The total loan amount of $4,900,000 is 53% of the purchase price with no holdback at closing. Opus was able to close the loan nine days earlier than the scheduled close of escrow date.