Opus Bank’s Structured Finance division provides $5,880,000 bridge financing in 35 day closing for the purchase of a 62,800 SF Gardena, CA office property
Overview of Transaction
- Borrower sought financing for the purchase and stabilization of a 65% occupied office property in Gardena, CA.
- Opus Bank over funded the initial advance at the closing of the property sale and committed to an additional $980,000 of funding for capital expenditures and tenant improvement/leasing commissions.
- The Tenant in Common Borrower purchased the Property as part of a reverse 1031 exchange, which necessitated that the loan permits the post close change of ownership from the 1031 accommodator’s entity to the final Borrower structure.
Significance of Transaction
- Opus Bank accommodated the Borrower’s request to execute the acquisition as a reverse 1031 exchange that required the Bank to over lend the initial funding, which was made possible through a deferred equity account posted at Opus Bank.
- Opus Bank originated the loan and funded in 35 days.
- Opus Bank permitted the transfer of ownership from the reverse exchange accommodating entity to the final Tenant in Common Borrower structure during the 180 days following the closing.
Opus Bank's Role
- Recognizing the proven value-add ability of the Sponsors, Opus Bank was able to accommodate the Tenant in Common’s reverse 1031 exchange driven transaction in a 35 day closing.