Pillar Financial, a division of SunTrust Bank, has originated a $10.4 million Freddie Mac loan on behalf of a local private investment group for the acquisition of Falling Creek, a 31-building multifamily community in Richmond, Va.
Falling Creek is located at 2530 Marina Drive in the Bellwood submarket and features 348 one- and two-bedroom units, as well as four retail spaces. The community situated over 15 acres features private balcony/patios and private entries, air conditioning, high-speed internet access, laundry facilities and grade-level parking. Falling Creek benefits from easy access to interstates 95, 295 and 288 and is close to public transportation.
The asset is 97.4 percent occupied, Yardi Matrix data shows. In the past five years, the occupancy rate ranged between 96.3 and 97.8 percent.
According to Yardi Matrix, the asset last traded in 1991, when Property Capital Group paid $6 million for it to an undisclosed seller. The community, built in 1964, became in 2008 subject to a $6 million loan held by a private lender, having its due date in June 2019.
The floating rate 7-year term loan with a 30-year amortization schedule was originated by Cullen O’Grady, vice president of Pillar’s Bethesda office on July 11, 2017.
“Our client was very pleased with this transaction due to the fact that we originated an 80 percent loan-to-value (LTV) with 24 months interest only, allowing the sponsor to conduct their exterior and interior rehabilitation plans to revitalize and reposition the asset in the marketplace,” said O’Grady in a prepared statement. “Overall, Richmond is a growing market with a lot of potential for value-add and repositioning of Class B and C assets.”
Images courtesy of Falling Creek website