Opus Bank is pleased to announce it provided:

Title: Construction Loan
Amount: $26,715,000
Month: September
Year: 2015

Construction Loan

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.

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