New Orlando Multifamily Community Trades For $95.5M

Newmark announced the $95,500,000 sale and $41,275,000 financing of Alta Headwaters at 4000 Headwaters Way in Orlando.

Wood Partners sold the newly constructed garden-style asset to Waypoint Residential. The new owners plan to rebrand the property as Luma Headwaters.

Newmark Multifamily Group’s Senior Managing Director Scott Ramey, Vice Chairman Patrick Dufour and Associate Brad Downing represented the seller in the transaction. The firm’s Debt and Structured Finance team, including Executive Managing Director Matthew Williams and Associate Director Kyle Schlitt, helped secure the acquisition financing for Waypoint Residential from Freddie Mac.

“Luma Headwaters is a prime example of the strength of the Orlando multifamily market as the property began leasing in late summer of 2020,” said Ramey. “The property averaged over 30 leases per month and was able to achieve over 90% leased in less than nine months, all while increasing rents by more than 10% along the way.”

Luma Headwaters recently finished construction in 2020 with 328 units spanning 314,583 square feet. The property is a 4-story, elevator-serviced building with units featuring modern and luxurious interiors. The apartment interiors include energy-efficient stainless-steel appliances, soft-close kitchen cabinetry with under-cabinet lighting, full-sized washer and dryer, quartz countertops, and wood-style planking through the units. The community amenities at the property include a resort-style saltwater pool with sundeck and private cabanas, a covered poolside pavilion, a 24/7 fitness center, clubhouse and game room with billiards lounge.

“Given Waypoint Residential’s proven track record along with the property’s incredible lease-up, we were able to procure interest from numerous lenders including life companies and the agencies,” said Williams. “Ultimately, Freddie Mac provided the most aggressive terms and the best closing execution based on their longstanding relationship with Waypoint Residential as a borrower.”

According to Newmark Research, multifamily investment sales volume in 2Q21 accelerated to $52.7 billion, representing a 238.1% surge year-over-year. With $92.1 billion in deal activity through the first half of 2021, it is 7.2% ahead of 2019’s pace, making it a record for sales volume. Multifamily rents have also recovered to pre-pandemic levels or higher in almost all markets throughout the US. Of the top 150 largest multifamily markets, 109 markets experienced year-over-year rent growth exceeding 5%.

Luma Headwaters is surrounded by several expanding capital projects and employment centers, including Infinity Park, Universal Orlando’s Epic Universe, Lockheed Martin, South Orlando Commercial Core, Southridge Commerce Park, and Orlando Theme Parks and Resorts Downtown Orlando and Lake Nona Medical City.