Opus Bank’s Structured Finance division provides a $26,715,000 construction loan facility to pay off existing debt and finance the conversion of a mobile home park to a modular home community
Overview of Transaction
- The property was an existing 93 space mobile home park on roughly 10 acres with coastal frontage in Pacifica, CA.
- The business plan included the acquisition of adjacent land to accommodate 78 high-end modular homes, to be manufactured offsite and installed in four phases.
Significance of Transaction
- The redevelopment required reconfiguration of the entire property, which included new streets, infrastructure, common areas, and offsite improvements.
- City approvals required the borrower to keep a number of traditional lots that will continue to be operated under current rent control regulations.
- The developer has a large institutional equity partner with approvals for both the project development as well as financing.
Opus Bank's Role
- Opus provided a construction loan that included proceeds to pay off the existing debt in addition to a commitment to cover development costs to complete the project.
- Based on the institutional sponsorship, the structure included a flexible limited recourse component, including a burn-off at completion, which met the requirements of both the developer and their institutional equity partner.