Opus Bank is pleased to announce it provided:
- Title: Bridge Loan
- Amount: $6,044,000
- Month: June
- Year: 2017
Opus Bank (“Opus”) provided a $6,044,000 bridge loan to finance the acquisition and renovation of an existing 57-unit multifamily property. The sponsors are experienced value-add investors and property managers, specializing in the Puget Sound multifamily market. This is a well located property in a stable and improving neighborhood.
The Sponsors are repeat customers of Opus’ Income Property Banking division. The property was underperforming the market and in need of renovation. Their business plan included an extensive exterior renovation, an interior renovation of all units, then raising rents to market rates. The sponsor’s experience in renovating properties, plus their hands-on management ability were a good match with this opportunity.
Opus successfully closed the loan on-time, which was critical given it was a 3rd party acquisition. Opus was able to underwrite to the projected, stabilized income at the property. The initial funding was approximately $4,832,000, which was 75% of the purchase price. Future renovation funding of $1,211,000 is available via monthly draws. When fully funded and stabilized, the loan will represent approximately 78% Loan to Cost and 65% Loan to Value.