Newmark has arranged the $123.5 million sale and $71 million financing of The Westerly, a newly-constructed, 352-unit trophy multifamily community in Winter Garden.
The property traded from Fore Property Company, one of the nation’s largest multifamily developers and PCCP, LLC, an established real estate finance and investment management firm, to Ortsac Capital Group, a private family investment firm.
Newmark Multifamily Group’s Senior Managing Director Scott Ramey and Associates Brad Downing and Paul Grant represented the seller in the transaction. Newmark Executive Managing Directors Matthew Williams and Brian Kochan and Associate Director Kyle Schlitt of the firm’s Debt and Structured Finance team helped secure the acquisition financing from Nationwide Life Insurance Company.
“The Westerly is a great example of the explosive growth that is currently taking place in the Horizon West submarket in Orlando,” said Ramey. “The property delivered first units at the end of 2020 and averaged 45 move-ins per month, achieving stabilization in less than eight months. This phenomenal lease-up pace, combined with over 20% rent growth on the Property’s recent leases, attracted Ortsac to the opportunity, which will be their first acquisition in the Central Florida market.”
The Westerly is a 352-unit, garden-style, LEED-certified, luxury multifamily community built in 2021 and located at 14680 Westerly Drive in Winter Garden. The asset totals 348,801 square feet and features a mix of studio, one-, two-, and three-bedroom units with an average unit size of 991 square feet. The property features six, four-story, elevator-serviced buildings with interior conditioned corridors and a two-story clubhouse and free-standing amenity building overlooking beautiful Lake Britt. Amenities at the property include a resort-style swimming pool, two 24-hour fitness centers, an ultra-modern sauna room, a wine room with multiple gathering areas, and an expansive conference room with WeWork stations.
“Our team worked in close concert with the buyers to secure the most aggressive financing terms available for the acquisition of The Westerly,” said Williams. “The purchase of the property, combined with the debt terms we received, will be a great addition to their portfolio and we look forward to working with them again in the future.”
The property’s ideal location in the booming Winter Garden area offers proximity to the region’s major destination retail and entertainment attractions, including Walt Disney World theme parks, the Orlando Resort Corridor, and Disney’s new 250,000-square-foot Flamingo Crossings Town Center. Notable medical employment centers proximate to the property include Orlando Health ER and Medical Pavilion Horizon West, AdventHealth Winter Garden, and Orlando Health – Health Central Hospital.
According to Newmark Research, multifamily rents have recovered to pre-pandemic levels or higher in almost all markets throughout the U.S. Of the top 150 largest multifamily markets, 109 markets experienced year-over-year rent growth exceeding 5%, and only 11 markets saw negative or no rent growth, primarily in large, more dense markets that have lagged in recovery. Orlando’s year-over-year rent growth as of the second quarter of 2021 was 7.9%.
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