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.