Opus Bank’s Structured Finance division provides a $5,960,000 bridge loan for the acquisition of two apartment buildings located in Whittier, CA
Overview of Transaction
- The client is a professional real estate investor specializing in 'value-add' opportunities with over 30 years of experience. The client identified a multi-family, value-add opportunity with below-market rents.
- The total project cost is $9,300,000, while the final loan amount was 64% LTC. Our client requested full funding at closing with no holdbacks. In all, they were planning to invest nearly $3,400,000 in cash to purchase and renovate this project to achieve their targeted market rents and stabilize the property.
- This structure provided maximum flexibility for the client to utilize equity that they had on hand to improve their IRR, while also providing the bank control of the renovation releases.
Significance of Transaction
- The client requested the loan not include a renovation or interest reserve holdback from loan proceeds at closing. The client had entered into escrow with a 41-day hard close date.
Opus Bank's Role
- Opus Bank’s (“Opus”) Multi-Family Bridge Acquisition Program was a perfect fit for the client's needs as the program sized loan proceeds based on an as-stabilized valuation, while funding the full loan amount.
- Opus met the client's 41-day hard close date with proactive deal management. With each deal, the banker assembled a tailored plan to meet the client's needs, bringing together a deal team to ensure the loan moved through the process efficiently and without issues.
- The total loan amount of $5,960,000 was 68% of the purchase price. At closing, Opus provided a $5,960,000 initial funding which was 64% of the stabilized LTV. The client pre-funded a collateralized deposit account to fund the $487,835 in renovations and $100,000 to fund debt service payments.