SFR Aggregation Loan
Opus Bank’s Structured Finance division provides a $22,000,000 credit facility to buy out investors and finance a portfolio of residential investment properties in Contra Costa County, CA.
Overview of Transaction
- The portfolio consisted of approximately 200 residential properties in Contra Costa County. Ownership was divided among two separate entities.
- The general partner was seeking an amount of debt to purchase all limited partner interest in the properties.
- The limited partner investment in the property was a significant portion of the acquisition costs and included participation in appreciation and other options.
Significance of Transaction
- The borrower’s business plan was to maximize cash flow in the early years of the loan, with anticipation of market rents increasing in years to come.
- The ability to opportunistically sell collateral was an important feature the borrower desired, so a release price structure was included in the facility.
Opus Bank's Role
- Opus Bank advised the client on establishing a new borrowing entity and provided a long-term permanent financing facility, allowing maximum proceeds to buy out investors.
- The facility was tailored to the borrower’s needs, including release pricing on individual assets and a structured amortization schedule to maximize cash flows in the early years of the loan