Newmark Arranges $23.1 Million New Construction Loan for Virginia Apartments

Newmark announces the company has secured a $23.1 million FHA new construction loan to fund the next phase of the Summerfield Apartments in Midlothian, Virginia. Newmark Executive Managing Director Nemo Hannafin and Vice Chairman Ed Belz secured the funding on behalf of landlord Summerfield Apartments, LLC.

The transaction marks a continuation of Newmark’s relationship with the borrower, who previously developed The Winterfield at Midlothian, a 238-unit market-rate multifamily complex adjacent to the new site. The latest phase of the Summerfield Apartments will add 122 units to the Winterfield Crossing mixed-use development.

“This closing is a great example of how FHA financing continues to provide an attractive option for long-term construction and permanent capital, even in an unpredictable market,” said Hannafin. “We’re proud to have helped our client navigate a rapidly shifting economic environment to successfully move their development plans forward.”

The U.S. Department of Housing and Urban Development recently updated its FHA guidelines, which now allow higher loan-to-cost ratios and reduced mortgage insurance premiums for market-rate apartments. These changes have helped ease some of the pressure developers face from escalating construction costs, which have risen significantly since 2020, depending on asset type and location.

The property’s location within the Winterfield Crossing development places it in a walkable, amenity-rich environment, with nearby access to retail, grocery and dining options along U.S. Route 60/Midlothian Turnpike. In addition, its central Chesterfield County address offers direct connectivity to major employment hubs across the Richmond metropolitan area, including downtown Richmond and the West End of Henrico County.