Newmark Facilitates $98 Million Sale, Financing Of Class A Apartment Community

Newmark Group, Inc. has completed the $98 million sale and financing of Luma Headwaters, a 328-unit Class A apartment community in Orlando.

The property traded from Waypoint Residential to Venterra Realty – an owner/operator of mixed-use and multifamily communities across the South and Southeastern United States.

Newmark Multifamily Capital Markets Executive Managing Director Scott Ramey, Director Brad Downing, Vice Chairman Patrick Dufour, Associate Paul Grant, and Senior Managing Director Ryan Moody represented the seller in the transaction.

“The sale of this premier Orlando apartment community shows the demand in the multifamily sector remains robust,” said Ramey. “Investors continue to see returns that outpace the impact of economic headwinds, as vacancies remain low. We’re pleased to satisfy the needs of both clients and look forward to advancing future transactions on similar properties.”

The Newmark Multifamily Capital Markets team handled the Freddie Mac loan assumption process and attained an additional $5.7 million in supplemental financing for the buyer, Venterra Realty. Vice Chairman Matt Williams, Director Kyle Schlitt, Assistant Vice President Rob Wright and Director James Maynard secured the supplemental loan on behalf of the buyer.

“We were able to work alongside Newmark’s loan assumption team to ensure everything was approved in a timely manner, and we hit the buyer’s anticipated closing date,” said Schlitt.

Completed in 2020, the property features 4-story, elevator-serviced buildings with interior conditioned corridors, state-of-the-art amenities, and modern & luxurious interiors. It is located at 4000 Headwaters Way in South Orlando, the most dynamic and rapidly growing submarket of Orlando. The property sits adjacent to Darden Restaurant’s headquarters and two prestigious destination hotels, The Ritz Carlton Orlando and JW Marriott Grande Lakes. Residents have easy access to the bustling I-Drive corridor, which features an abundance of retail and lifestyle destinations.

This transaction comes as returns in the multifamily real estate sector continue to outpace inflation, according to Newmark Research. Total returns through 2Q22 averaged 24.4% on an annualized basis, a 450-basis point increase from 2021. While inflation reached 9.1%, real returns for multifamily rose to 15.3%.