Westmount Buys Suburban Orlando Property in $62M Sale
In a deal arranged by Berkadia, Aspen Square Management sold The Lexington at Winter Park to Texas-based Westmount Realty Capital for $62 million.
Start Your Application and Unlock the Power of Choice$5.6M offered by a Bank$1.2M offered by a Bank$2M offered by an Agency$1.4M offered by a Credit UnionClick Here to Get Quotes!The Lexington at Winter Park. Image from Google Street View.
Westmount Realty Capital has closed on the acquisition of The Lexington at Winter Park, a 228-unit property in suburban Orlando. Aspen Square Management traded the community in a $62.3 million deal, according to ConnectCRE.
Berkadia arranged the transaction on behalf of the seller. Records filed with Orange County show that MetLife provided Westmount with a $51.6 million life company loan.
The Lexington at Winter Park is located at 1701 Lee Road in Winter Park, Fla. The property has a healthy mix of floor plans including one-, two-, and three-bedroom options complete with walk-in closet space, full size in-unit washers and dryers, and private patios. The community’s amenities include a 24-hour fitness center, swimming pool, clubhouse, Amazon locker hub, and on-site dog park.
Center of Attention
Central Florida, most notably Orlando, has seen some impressive market activity over the course of the past year. Orlando rents have risen by roughly 24.7% year-over-year — the third-fastest average rent increase in the nation, behind Tampa and Miami — and recent migration trends have kept demand at a substantial level, boosting occupancy across the metro.
Surprisingly, however, it's the Orlando submarkets that are the true contenders to keep an eye on, as this report from Yardi Matrix points out. Rent growth in outer Orlando’s submarkets has outpaced the larger urban metropolitan area, with a more pronounced bump in the northern submarkets of Winterhaven, Maitland, Altamonte Springs, Casselberry, and Lake Mary. Winter Haven leads the pack, beginning the year on a 39% year-over-year rent increase, with Hunter’s Creek (36%) and Forest City (35.2%) not far behind.
Related Questions
What are the benefits of investing in suburban Orlando real estate?
Investing in suburban Orlando real estate can offer a number of benefits. According to this report from Zillow, Orlando rents have risen by roughly 24.7% year-over-year, making it the third-fastest average rent increase in the nation. Additionally, according to this report from Yardi Matrix, rent growth in outer Orlando’s submarkets has outpaced the larger urban metropolitan area, with a more pronounced bump in the northern submarkets of Winterhaven, Maitland, Altamonte Springs, Casselberry, and Lake Mary. Furthermore, suburban multifamily investments are broadly more accessible for most investors from a pricing standpoint, and can even take advantage of some remarkably competitive small balance multifamily loans.
What are the risks associated with investing in suburban Orlando real estate?
Investing in suburban Orlando real estate carries a few risks. The most significant risk is the potential for oversupply in the market. With the influx of companies relocating to the area, there is a risk that the market could become oversaturated with new developments, leading to a decrease in rental rates and occupancy levels. Additionally, the area is prone to hurricanes and other natural disasters, which could cause significant damage to properties and lead to costly repairs.
Other risks include rising interest rates, which could make it more difficult for investors to secure financing, and the potential for changes in local and state regulations that could affect the market. Finally, there is always the risk of tenant turnover, which could lead to vacancies and lost rental income.
What are the current trends in suburban Orlando real estate?
The current trends in suburban Orlando real estate are that rents have risen by roughly 24.7% year-over-year, making it the third-fastest average rent increase in the nation. Rent growth in outer Orlando’s submarkets has outpaced the larger urban metropolitan area, with a more pronounced bump in the northern submarkets of Winterhaven, Maitland, Altamonte Springs, Casselberry, and Lake Mary. Winter Haven leads the pack, beginning the year on a 39% year-over-year rent increase, with Hunter’s Creek (36%) and Forest City (35.2%) not far behind. Additionally, an article from GlobeSt in October 2022 showed that rental rates have increased far faster in suburban markets than in city centers, when examining trends since early 2020.
What financing options are available for purchasing suburban Orlando real estate?
For purchasing suburban Orlando real estate, there are several financing options available. These include conventional apartment loans, Fannie Mae apartment financing, Freddie Mac apartment financing, FHA/HUD financing, mezzanine financing, CMBS loans, bridge loans, and apartment construction loans. According to a report from Yardi Matrix, rent growth in outer Orlando’s submarkets has outpaced the larger urban metropolitan area, with a more pronounced bump in the northern submarkets of Winterhaven, Maitland, Altamonte Springs, Casselberry, and Lake Mary.
For more information on these loan products, please visit the following links:
- Conventional apartment loans
- Fannie Mae apartment financing
- Freddie Mac apartment financing
- FHA/HUD financing
- Mezzanine financing
- CMBS loans
- Bridge loans
- Apartment construction loans
For more information on rent growth in Orlando's submarkets, please visit this report from Yardi Matrix.
What are the tax implications of investing in suburban Orlando real estate?
Investing in suburban Orlando real estate can have a variety of tax implications. Property taxes in the area can vary widely, with some neighborhoods having higher taxes than others. According to a report from Yardi Matrix, rent growth in outer Orlando’s submarkets has outpaced the larger urban metropolitan area, with a more pronounced bump in the northern submarkets of Winterhaven, Maitland, Altamonte Springs, Casselberry, and Lake Mary.
It is important to understand the property tax situation in the area of a potential investment. The municipality's assessment office should have all relevant tax information on file, and potential investors should talk to the business owners and homeowners in the target community to determine if property taxes are likely to increase in the near future.
For more information, please refer to this report from Zillow and this report from Yardi Matrix.
What are the best strategies for investing in suburban Orlando real estate?
The best strategies for investing in suburban Orlando real estate depend on your individual goals and financial situation. Generally speaking, you should look for properties that are priced competitively and have potential for appreciation. You may also want to consider taking advantage of Fannie Mae Multifamily Small Loans, which offer competitive interest rates and can help you finance your investment. Additionally, you may want to look for properties that are in garden apartment communities, as these have seen lower cap rates in recent years, according to Wealth Management.