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.