Red Oak Capital Holdings, LLC, a leading provider of private capital solutions for commercial real estate, has closed a $1.50-million bridge loan to facilitate the acquisition and repositioning for a Norfolk Multifamily Redevelopment known as 32 Fenner Apartments, a garden-style community located at 717 Guy Avenue in Norfolk, Virginia.
The non-recourse, interest-only loan was structured under Red Oak’s Opportunistic Bridge Loan Program and features a 2.5-year term and a LTSV of 49.02%.
The borrower, Community Investment Group, is a vertically integrated real estate investment firm specializing in multifamily acquisition, construction, and repositioning. It currently owns 28 communities totaling 3,460 units across Virginia, Georgia, North Carolina, and Tennessee, with an estimated net asset value of approximately $164 million.
CIG plans to implement a full renovation of the vacant units, focusing on new flooring, appliances, drywall repairs, paint, and updated lighting. Exterior improvements will include roof and gutter repairs, masonry work, parking lot resurfacing, landscaping, and the addition of security features and a new playground. Upon stabilization, the borrower plans to exit the Red Oak loan through a permanent bank refinance.
“This transaction reflects the kind of value-based lending we continue to pursue—experienced local sponsorship, discounted acquisition pricing, and a clear path to lease-up in a high-occupancy submarket,” said Gary Bechtel, CEO of Red Oak Capital Holdings. “With the sponsor’s proven success executing similar business plans in the immediate area, we’re confident in the long-term viability of this repositioning.”
The property is located in the Northern Norfolk submarket, which has maintained a strong 96.6% multifamily occupancy rate. New deliveries account for just 0.6% of total inventory, and absorption in Q4 2024 remained positive. Pro forma rents at 32 Fenner are projected to be 10–20% below the market average, providing affordability advantages within the surrounding residential and retail corridor.
