Opus Bank (“Opus”) provided an $8,750,000 bridge loan to finance the conversion of an existing building into a 75-unit multifamily property.  The sponsors are experienced value-add investors and property managers.  The property is well located in the Ballard submarket of Seattle, a strong and desirable multifamily location.

Opus recognized the potential of the business plan, which was to repurpose an existing building into a 75-unit apartment project.  This included an extensive interior and exterior renovation.  The sponsors’ experience in renovating properties, plus the strong redevelopment management team were a good match with this opportunity.

Opus worked with the sponsors as they proceeded through the change-of-use permitting process, with funding occurring after issuance of the permits. Opus was able to underwrite to the projected, stabilized income at the property.  The initial funding was approximately $5,639,000.  Future renovation funding of $3,111,000 is available via monthly draws and included an interest reserve.  When fully funded and stabilized, the loan will represent approximately 65% Loan to Cost and 56% Loan to Value.