Opus Bank is pleased to announce it provided:
- Title: Bridge Loan
- Amount: $9,230,000
- Month: June
- Year: 2016
Opus Bank (“Opus”) provided a $9,230,000 bridge loan to finance the acquisition and stabilization of an existing, 74,974 square foot low-rise suburban office property. The sponsors are experienced real estate investors. The subject is a well-located office property in an established business park. Due to tenant rollover at the time of acquisition, the bridge financing provided both certainty of execution and the ability to optimize subsequent long-term financing.
The sponsors were existing customers of Opus’ Income Property Banking division and this was an opportunity to expand the relationship to the Structured Finance division. Opus was able to look past the near-term tenant rollover and underwrite the loan using projected stabilized income at the property.
Certainty of execution was critical for the sponsors, given the acquisition included a 1031 exchange. Opus successfully closed the loan within the required timeframe. The full loan amount of $9,230,000 was funded at closing, which was 65% of the purchase price. Given the property was generating above break-even cash flow at closing, no interest reserve was required. When stabilized, the loan will represent approximately 63% Loan to Value.