Opus Bank’s Structured Finance division provides $23,600,000 in construction financing for a 110-unit multifamily project in Los Angeles, CA
Overview of Transaction
Opus Bank provided a $23,600,000 construction loan to finance the ground up construction of a 110-unit multifamily project with over 1,400 square feet of ground floor retail.
The project is located near shopping centers, restaurants, and major Downtown Los Angeles attractions; including Staples Center, L.A. Live, and Los Angeles Convention Center.
Significance of Transaction
The client will construct a luxury-oriented apartment building with six residential levels over retail and live/work units on 25,425 square feet of land in one of the most vibrant and dynamic submarkets in Downtown Los Angeles.
The project is located across the street from the Los Angeles Convention Center, which is currently undergoing significant growth and investment including projects such as the Metropolis, a $1-billion-plus project offering 1,608 condos, 350-room hotel and 78,000 square feet of retail space, and Oceanwide Plaza, a two-tower project offering 504 condos, 183-room hotel, and 167,000 square feet of retail space.
Opus Bank’s Role
Opus structured a construction loan to suit the needs of the borrower. It was a complex project that requires a full-time construction management company. The company has a 24-month timeline for the construction period and the terms of the loan allowed for reasonable delays and included extension options.
The total loan amount of $23,600,000 represents 54% of the property’s stabilized value, 58% of total costs, and stabilized debt service coverage of 1.20x.