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.