Opus Bank’s Structured Finance division provides $6,700,000 to refinance and stabilize two multi-tenant office buildings located in Oakland, CA
Overview of Transaction
- The borrower had previously purchased two commercial buildings, including a former bank branch that needed to be converted for multi-tenant office use.
- The borrower looked to refinance existing debt and obtain additional financing to accommodate the renovation costs of the bank building, as well as anticipated tenant improvements and leasing commissions.
Significance of Transaction
- The properties’ physical vacancy necessitated a lender that could structure a loan to facilitate value creation and for loan prepayment flexibility.
- Opus Bank (“Opus”) provided a $6,700,000 credit facility to refinance and stabilize both buildings.
Opus Bank's Role
- Opus recognized the office market dynamics in Oakland and the borrower’s real estate expertise and provided a financing structure that incorporated conversion costs for the bank building and tenant improvements for pending and future leases.
- Because the bank building conversion began prior to closing, Opus Bank reimbursed the borrower for costs incurred prior to the close of the loan.