Opus Bank’s Structured Finance division provides an $8,000,000 bridge loan facility to refinance and stabilize a 45,000 square foot Class B office building in San Mateo, CA.
Overview of Transaction
- The property was operating at a below market 43% occupancy level and had value upside in the rising tide of rents and improving office tenant demand in the market.
- The loan provided for repayment of existing debt, plus additional capital for leasing and loan carrying costs through to the property’s stabilization.
- Loan recourse was to the U.S.-based operating entity only, not the principals.
Significance of Transaction
- The project’s low occupancy necessitated that the loan to include an interest reserve structure.
- There were significant property level capital expenditures, tenant improvements (“TI”), and leasing commissions (“LC”) anticipated and included in the loan.
- Opus Bank agreed to maximize the loan proceeds at close to meet the release pricing of the existing loan’s cross-collateralization requirements.
Opus Bank's Role
- Opus Bank provided a flexible floating rate bridge loan, allowing maximum loan proceeds, the funding necessary for the TI/LC budget, and an interest reserve to service the debt until the asset is stabilized.
- Opus Bank was able to close the loan in 45 days.