Opus Bank’s Structured Finance division provides $8,640,000 credit facility for the construction of 71 micro apartment units in Oakland, CA.
Overview of Transaction
Opus Bank provided an $8,640,000 credit facility for the construction of 71 micro apartments in Oakland, CA.
The project is located within Oakland’s Broadway Corridor, which is transitioning into the city’s major retail and commercial sector as a result of the Corridor’s re-entitlement and repositioning.
Significance of Transaction
The project is comprised of fully self-contained micro units, which provide affordable living arrangements in proximity to mass transit hubs, jobs, and newly revitalized area of Oakland.
The loan facility provided up to 80% of project costs, which included hard, soft, and interest reserve financing.
Opus Bank's Role
The borrower needed a bank that understood the nuances of the micro unit product type, and Opus Bank (“Opus”) is a lending pioneer in the micro unit space having provided financing for micro units in the Puget Sound region and the San Francisco Bay Area.
The borrower received current market value credit for the land and was offered an attractive floating rate loan that provides monthly draws for the project’s construction.
Upon completion and stabilization, Opus Bank will offer the borrower long-term financing.