Opus Bank’s Structured Finance division provides $2,200,000 Mini-Bridge financing for the purchase of an 18 unit multifamily garden style property in Portland, OR
Overview of Transaction
The client, a professional local real estate investor specializing in 'value-add’ opportunities, identified an off-market opportunity with under-market rents.
The seller was asking for $2,675,000 for a property with a $1,850,000 as-is appraisal valuation.
The client was prepared to invest nearly $1,400,000 in cash in order to purchase and renovate this project to achieve his targeted market rents and stabilize the property.
The client had entered into escrow with a 36-day hard close date.
Significance of Transaction
The broker suggested that the investor speak to Opus Bank regarding Opus’ new Mini-Bridge Multi-Family Acquisition Program, which allows Opus to include an as-stabilized appraisal valuation as part of the credit underwriting package.
Opus’ client prepared pro forma income statements looking out 18 months with a detailed total renovation budget of $132,000 covering a number of improvements.
At closing, Opus provided a $1,950,000 initial funding. Once the client achieves his pro forma income, Opus Bank will fund the remaining $250,000 earn-out.
Opus Bank's Role
Opus' new Mini-Bridge Multi-Family Acquisition Program was a perfect fit for the client's needs as the program sized loan proceeds based on an as-stabilized valuation and had a built-in interest reserve so that the borrower didn't need to make monthly payments.
Opus’ client only needed $715,000 plus closing costs to purchase this property, which allowed the client to take the additional liquidity and invest in another property they desired to add to their portfolio.
Most importantly, this was done in the 36-day hard close date time frame.