Opus Bank is pleased to announce it provided:
- Title: Bridge Loan
- Amount: $7,600,000
- Month: April
- Year: 2016
A professional real estate investor and syndicator with over 30 years of experience executing value-add business plans in and around Portland, Oregon identified a well located property that was 100% occupied but needed interior and exterior improvements to maximize its value. Due to the property’s dated appeal and condition it lagged submarket rents and based on traditional lender underwriting, the client’s proceeds would not have been sufficient to complete the acquisition.
The client owns other properties in the Portland area and through its management company manages many more. The client relied on his market knowledge and expertise to estimate that a $1,000,000 capital renovation budget would be sufficient to bring the subject to market. The renovation budget was split roughly 50:50 between the exterior and interior, and included exterior paint, improvements to the landscaping and signage, adding interior bike storage, as well as improving 48 of the property’s 72 units with new countertops, fixtures, and flooring.
The client has an existing relationship with Opus Bank (“Opus”) and has borrowed on both bridge and permanent basis. For this loan, proceeds were based on as-renovated rents, and the loan was structured with interest reserves and capital renovation holdbacks as well as contingency amounts. The total loan amount of $7,600,000 was 96% of the purchase price. At closing, Opus funded $6,350,000 with future advances to be made monthly as costs were incurred. When fully funded, the total loan amount will represent 80% of total project costs.