Opus Bank provides $8.75 million Bridge Facility for the Purchase and Stabilization of a 3 Property Mixed-Use Portfolio in Sacramento, CA
Overview of Transaction
- The Borrower, a Sacramento-based, full-service commercial real estate investment firm, acquired a three property portfolio (2 industrial and 1 neighborhood retail center) with good upside potential.
- Value creation will be achieved through the renovation and lease–up stabilization of the aggregate 170,709 square foot portfolio, which was 53% occupied at acquisition.
- The acquisition bridge loan carries a 36-month term, variable rate based on 6-Month LIBOR, and interest only payments over the entire term.
Significance of Transaction
- Opus Bank provided structured release provisions for the individual properties, as well as separate legal parcels within the properties, in the event of a favorable offer to sell.
- Collateral flexibility allowing for the release of a to-be-sold industrial building pending a lot line adjustment post-closing.
Opus Bank's Role
- Opus Bank recognized the borrower’s high level of expertise creating value with underperforming assets in the Sacramento market, which allowed for the flexible financing options offered by the Bank.
- Opus Bank was able to close the loan in 45 days.