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.