Opus Bank is pleased to announce it provided:
- Title: Construction Loan
- Amount: $9,600,000
- Month: August
- Year: 2016
Opus Bank (“Opus”) provided a $9,690,000 construction loan to develop a 46,053 sq. ft. self-storage facility, 2,000 sq. ft. retail building, and refinance a retail pad space, all on a single parcel in the Canoga Park neighborhood of Los Angeles.
The client, with whom Opus has done business in the past, acquired the property with short-term debt that was approaching maturity. The existing structure had already been demolished, and the client began grading work on the site. The retail space was pre-leased to a national credit tenant, and the retail pad space was leased to a national restaurant chain through a ground lease. Both deals were approaching completion deadline dates for delivering the space to the tenants. The borrower also had future plans to subdivide the parcel into three separate lots and needed a lender willing to allow for future releases upon sale of the retail spaces.
Opus was able to understand the various aspects of the transaction and put together a loan proposal that met the borrower’s needs. The deal team worked with the title insurance company to get the necessary endorsements to close the construction loan—in light of the broken priority due to the site work, which was already underway. Opus closed the loan, allowing the borrower to repay the existing debt, begin construction, and deliver the completed spaces to the tenants within the timelines specified in the leases.