Opus Bank is pleased to announce it provided:

Title: Small Balance Loan
Amount: $3,160,000
Month: July
Year: 2015

Small Balance Loan

Opus Bank’s Structured Finance division provides a $3,160,000 acquisition and renovation bridge loan for a 20 unit multifamily property located in Seattle’s Queen Anne neighborhood.

Overview of Transaction

  • The borrower acquired an older, well located apartment property which had several units off-line due to weather damage.
  • The property offered substantial upside through the repair of the off-line units and renovation of the remaining units.
  • Current rents at the property were well below market rents, due to the need for substantial repairs and renovation.
  • The loan is variable rate, interest only for the term, with extension options available.

Significance of Transaction

  • Opus Bank (“Opus”) was able to look past the current income and underwrite the projected, stabilized income at the property.
  • Additional funds were made available within the loan for the cost of the necessary repairs, renovations, and for an interest reserve.
  • The acquisition had to close quickly and was successfully executed within the contract deadline.
  • Opus has the local presence needed to understand this opportunity and structure the appropriate loan for the Borrower to acquire the property and fund the improvements.

Opus Bank's Role:

  • Opus understood that this was an opportunistic, time sensitive acquisition by an experienced sponsor with the proven ability to renovate the property and achieve market rents.
  • Opus successfully closed the loan within the required time frame, and provided both the initial funding plus future funding the sponsor needed to achieve their business plan at the property.

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