Salt Lake City, UT-based NorthRock Companies has secured a $36.9 million fixed-rate Fannie Mae loan for the acquisition of Hickory Creek, a 294-unit apartment community located in Henrico, VA.
Rossana Bouchaya and Jonathan Pratt of Capital One originated the transaction on behalf of NorthRock. The real estate private equity firm is a repeat Capital One and Fannie Mae customer.
“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. She also noted that interest rates dropped 10 basis points on the day NorthRock rate-locked – only to rise 70 basis points over the next two weeks.
Hickory Creek open in 1984, and NorthRock intends to renovate approximately 75% of the units during its first three years of ownership.