Opus Bank is pleased to announce it provided:
- Title: Bridge Loan
- Amount: $7,975,000
- Month: January
- Year: 2018
Our client is a professional real estate investment firm with extensive experience in acquiring, renovating, and managing multifamily projects in the Seattle, Washington area. The client is a repeat customer of Opus Bank (“Opus”) and has utilized Opus’ bridge and permanent programs on prior multifamily properties. The client had the opportunity to acquire two adjacent properties through an off-market transaction. While well located, both properties were in need of capital improvements to their exteriors in addition to needing interior renovations to effectively compete.
The client owns other properties in the immediate area and was confident the subject properties were operating well below their potential. This localized market knowledge helped to estimate upside potential as well as the costs necessary to unlock the potential. The budget to acquire and improve the properties was $10,252,000 with $8,715,000 needed for acquisition and $1,450,000 in renovation costs. The bulk of the renovation budget is dedicated to unit interiors with each unit getting all new appliances, cabinetry, paint and flooring.
Opus’ bridge lending program was a perfect fit for the clients business plan. The loan proceeds commitment was sized on as-renovated rents and the loan was structured with soft and hard cost hold-backs as well as contingency amounts. The loans totaled $7,975,000 representing 78% of total project costs. At closing, Opus funded $6,540,000 with future advances to be made monthly as costs are incurred.