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.