Opus Bank’s Structured Finance division provides a $6,530,000 bridge loan facility to finance the acquisition and renovation of a 38 unit multifamily property in San Leandro, CA
Overview of Transaction
- The client, an experienced value-add real estate investment group, had identified an underperforming multifamily asset for sale. Although the property was 100% occupied, it was underperforming with rents below market and dated units that were in need of renovation and updating, providing an opportunity for significant rental increases.
Significance of Transaction
- Opus Bank (“Opus”) provided a bridge loan facility to acquire the property and allow approximately $1.14 million in future advances for building and unit renovations, with the commitment based on the prospective stabilized value.
Opus Bank's Role
- Opus worked with the borrower in providing a flexible recourse structure, allowing the sponsor to manage their contingent liabilities. This was the third multifamily bridge loan closed with the client.