Five-State Property Portfolio Delivers $151 Million in Cash-Out Proceeds
Boston-based investment firm West Shore has closed a $690 million commercial mortgage-backed securities refinancing tied to a portfolio of 13 multifamily properties located across five Sun Belt states, representing the first major U.S. multifamily portfolio financing to close this year.
Citi originated the cash-out, single-asset, single-borrower loan, which is backed by 4,077 apartment units spread across Florida, Texas, South Carolina, Kentucky, and Tennessee. The portfolio consists of a mix of garden-style apartment communities and townhome developments.
Newmark Executive Vice Chairman Purvesh Gosalia advised West Shore on the transaction. The deal marks Newmark’s third single-asset, single-borrower financing completed with West Shore, bringing total financing volume between the two parties to $1.8 billion over the past 15 months.
According to Gosalia, the refinancing underscores continued investor demand for high-quality, well-located multifamily assets throughout the Southeast and broader Sun Belt region.
The properties are located across nine metropolitan areas, with College Station, Texas; Columbia, South Carolina; and Tallahassee, Florida accounting for 51% of the allocated loan balance. Morningstar DBRS, which rated the CMBS transaction CSTL 2026-GATE3, holds a $630 million portion of the overall financing.
The portfolio includes 3,497 market-rate apartments and 580 affordable housing units, with property construction dates ranging from 1983 to 2020.
The largest asset in the refinancing was Lake Walk at Traditions, a 657-unit garden-style community developed in phases between 2014 and 2018. The College Station, Texas property also includes operations associated with the nearby 315-unit Lake Walk 8175, bringing the combined total to 972 units, according to Morningstar.
The properties are situated approximately four miles from the main campus of Texas A&M University, one of the largest universities in the country.
Appraisals valued Lake Walk at Traditions at $155.9 million and Lake Walk 8175 at $78.8 million, resulting in a combined as-is valuation of $234.7 million.
West Shore acquired the portfolio assets between 2016 and 2021 and has since invested $26.29 million in capital improvements, according to Morningstar. These upgrades contributed to rent growth of 83.6% and an increase in net operating income of 161.2% across the portfolio.
Occupancy across the portfolio reached 92.8% as of January 2026, up from 89.8% over the trailing 12-month period.
Financing structure
The refinancing features a five-year, interest-only loan with a fixed interest rate of 5.5%. West Shore utilized $630 million in senior mortgage debt alongside $60.5 million in mezzanine financing to complete the transaction.
Proceeds from the financing were used to retire $514 million in existing debt, generate $151.2 million in cash-out equity, and cover $15.5 million in prepayment penalties.
West Shore also plans to deploy an additional $17.6 million toward renovations across nine properties within the portfolio. The planned improvements will impact 1,451 units and include amenity enhancements.
Founded in 2016, West Shore owns 54 multifamily properties totaling more than 18,500 units, with an aggregate portfolio value exceeding $4.5 billion. The firm manages all 13 assets included in the refinancing and continues to focus on acquiring and operating communities in high-growth markets.
Source: Original reporting by Mark Heschmeyer, CoStar News.
