Opus Bank is pleased to announce it provided:

Title: Bridge Loan
Amount: $7,900,000
Month: September
Year: 2015

Bridge Loan

Opus Bank’s Structured Finance division provides a $7,900,000 bridge loan to facilitate the acquisition and renovation of an 80-unit apartment community located in Carmichael, California

Overview of Transaction

  • The property consists of 2.75 acres of land, improved with 80 apartment units contained within four five-story buildings.
  • The property’s occupancy was stabilized, but rent levels were below market due to needed renovations to both the buildings’ exteriors and unit interiors.
  • The borrower desired bridge financing that could provide funds for acquisition as well as for the renovation.

Significance of Transaction

  • The renovation budget was extensive and equated to approximately 70% of the property’s purchase price. The renovation plan is to renovate the property building by building.
  • The borrower needed a lender who could structure a loan to facilitate value creation in a phased manner and provide flexibility to prepay.

Opus Bank's Role

  • Opus Bank (“Opus”) recognized Carmichael’s market dynamics and the borrower’s real estate expertise, and then Opus provided a financing structure that incorporated proceeds for acquisition, hard and soft costs including interest reserve.

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