Newmark announces it has arranged $144 million in financing on behalf of Ortsac Capital Group for the development and acquisition of three multifamily properties. The financing was for the development of 5800 Reese Road in Davie, Florida and the acquisition of The Westerly in Winter Garden, Florida and The Isles in Fort Lauderdale, Florida. Newmark Executive Managing Directors Matt Williams and Brian Kochan along with Assistant Vice President James Maynard and Associate Director Kyle Schlitt advised the borrower.
5800 Reese Road is a planned, 170-unit, six-story, midrise apartment building consisting of studio, one-, two- and three-bedroom units ranging from 537 to 1,302 square feet. The Newmark team arranged a $30 million construction loan provided by Synovus Bank. The project will be completed in 2023 and represents Ortsac Capital Group’s first ground-up development. Atlanta-based ArchCo Residential is Ortsac’s partner in the development.
The Westerly is a newly built, 352-unit multifamily community in Winter Garden, Florida that was completed in 2021. The Newmark team arranged a $71 million, fixed-rate acquisition loan from Nationwide Mutual Insurance Company. The arrangement includes interest-only payments for the term of the loan to align with Ortsac’s long-term hold strategy. Ortsac purchased the asset from a joint venture between PCCP and Fore Property Company on November 24, 2021 for $123.5 million. The acquisition was Ortsac’s first in the Orlando area, a market the company is bullish on given its strong population growth and diverse employment base.
The Isles is a 127-unit, core-plus, townhome-style property in Fort Lauderdale, Florida which Ortsac purchased from a joint venture between AIG and Mill Creek Residential on December 1, 2021 for $51.5 million. Newmark arranged a $43 million, floating-rate acquisition loan provided by LoanCore Capital, LLC. The structured financing allows for future funding of continued interior renovations, a program which has been proven accretive by the seller. The short-term bridge loan provides Ortsac with the flexibility to refinance into a permanent loan once the value-add program has been completed.
Ortsac Capital Group, founded by Bobby and Sofia Castro, is a private family office focused on multifamily investments and headquartered in Fort Lauderdale. Its current portfolio totals just over 2,200 units, with a majority of its holdings concentrated in Broward County, Florida. Eddie Chesney and John Keaveny of Ortsac Capital Group served as acquisition managers for the transactions.
According to Newmark Research, U.S. multifamily mortgage debt outstanding rose to $1.74 trillion during the third quarter of 2021, a 1.4% increase quarter-over-quarter. With $776 billion in multifamily mortgage maturities estimated from 2021 through 2025, both the multifamily investments sales and financing markets are likely to remain robust over the next several years.
