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Deals & Dealmakers

Capital One Closes $36.9 Million Fannie Mae Loan for Virginia Apartments

Capital One announced today that it provided a $36.9 million fixed-rate Fannie Mae loan to NorthRock Companies for the acquisition of Hickory Creek, a 294-unit apartment community in Richmond, Virginia. Senior Vice Presidents Rossana Bouchaya and Jonathan Pratt originated the transaction with NorthRock, a repeat Capital One and Fannie Mae customer that currently owns more than 3,500 units across the Southeast and Intermountain West.

“While NorthRock was originally going to assume the seller’s existing debt, we were able to move quickly to capitalize on interest rate volatility and offer Northrock a new loan that would give them a full 10-year term, an extended interest-only period, and amortization on a 35-year schedule, said Bouchaya, noting that interest rates dropped 10 basis points on the day NorthRock rate-locked – only to rise 70 basis points over the next two weeks. 

NorthRock’s purchase of Hickory Creek is an example of its focus on core-plus and value-add assets in growing markets. The community is located in Richmond’s Far West End submarket, where the vacancy rate is slightly more than 2 percent. It opened in 1984, and NorthRock intends to renovate approximately 75 percent of the units during its first three years of ownership, including upgrading the pool, fitness center, and clubhouse.

Capital One Agency Finance, a top-10 agency lender, provides multiple financing solutions for multifamily investors, including Fannie Mae, Freddie Mac, and FHA programs nationwide. The team also has access to additional balance sheet financing options as a top 10 U.S. commercial bank. With bankers, underwriters and service teams in locations across the country, Capital One Agency Finance is ready to help developers and property owners find unique solutions to their financing needs. 

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