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.