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.