Opus Bank is pleased to announce it provided:
- Title: Bridge Loan
- Amount: $7,250,000
- Month: November
- Year: 2016
Opus Bank (“Opus”) provided a $7,250,000 bridge loan to finance the acquisition and renovation of an existing 52-unit apartment building. The sponsors are experienced value-add investors, specializing in the Seattle multifamily market. The property is located in a strong and improving neighborhood.
The sponsors were previous clients of Opus’ Structured Finance and Income Property Banking divisions. Their business plan included an extensive exterior renovation of the property, interior renovation of all units, and then raising rents to market rates. The acquisition required executing both a reverse 1031 exchange and a traditional 1031 exchange.
Opus successfully closed the loan on time, which was critical given the 1031 exchanges and the required purchase timeframe. Opus was able to underwrite the projected, stabilized income at the property. The initial funding was approximately $4,375,000, which was 52% of the purchase price. Future renovation funding of $2,875,000 is available via monthly draws. When fully funded and stabilized, the loan will represent approximately 64% Loan to Cost and 53% Loan to Value.