Newmark Secures $600 Million Financing Package for West Shore's Multifamily Expansion
Newmark Secures $600 Million Financing Package for West Shore's Multifamily Expansion
In a significant financial maneuver in the commercial real estate sector, Newmark Group, Inc. arranged a whopping $600 million financing package for West Shore, aimed at bolstering their multifamily property portfolio across various strategic regions in the United States. The deal encompasses a comprehensive refinancing initiative aimed at existing properties as well as new acquisitions, reflecting Newmark's strength and expertise in the real estate advisory space.
Financing Details
The financing package includes a $550 million senior mortgage and a $50 million mezzanine loan, which have been executed in partnership with Citi. This notable deal marks the third-largest multifamily transaction in the U.S. for 2025. The proceeds from this financing are set to refinance over $250 million in existing debts for five stabilized properties located in Florida, Virginia, North Carolina, and Kentucky. Additionally, West Shore will utilize part of these funds to acquire three multifamily assets comprising 1,496 units situated across South Carolina, Ohio, and Florida.
Newmark's Executive Vice Chairman, Purvesh Gosalia, along with Transaction Manager Hayden Hedrick, spearheaded this transaction, which was successfully closed within a tight timeline of 60 days. This accomplishment underlines the team's efficiency and the robustness of the commercial real estate advisory services provided by Newmark.
West Shore's Growth Strategy
This financing marks West Shore's second SASB (Single Asset Single Borrower) transaction within the past year, highlighting their ongoing commitment to growth in a vibrant multifamily market. Under the astute leadership of President Lee Rosenthal, West Shore has expanded its operational footprint to over 18,500 units across nine states, positioning itself as one of the most active multifamily owners within the Sunbelt region. Rosenthal emphasized, "Closing a $600 million SASB as a borrower and acquiring multifamily assets in high-growth markets represents a pivotal milestone in our expansion strategy. We are dedicated to enhancing our portfolio while investing in communities that offer long-term opportunities and resilience."
Market Insights
The partnership with Citi has proven beneficial, with its capital markets team, led by James Goldberg, managing to secure the most competitive pricing levels seen in multifamily SASB transactions this year. Such transactions underscore the robust current environment of the CMBS (Commercial Mortgage-Backed Securities) market and indicate high investor appetites for well-leased, institutionally managed multifamily properties. According to Gosalia, the financing reflects a strong demand for leases in sustainable properties, particularly in dynamic growth areas adjacent to the Sunbelt. The favorable economic conditions allowed the borrower to secure low capital costs and enhance liquidity for future growth initiatives.
The portfolio involved in this transaction encompasses 3,241 units and boasts an impressive blended occupancy rate of 93.4% with an average unit size of 1,014 square feet. The refinancing portfolio includes communities located in Richmond (Virginia); Clearwater (Florida); Waxhaw (North Carolina); and Lexington (Kentucky). Newly purchased properties will add vibrancy to the portfolio in areas such as Columbus (Ohio); North Augusta (South Carolina); and Palm Beach Gardens (Florida).
According to Newmark Research, overall U.S. multifamily investment volume reached $41 billion during the second quarter of 2025, marking a 15% increase quarter-over-quarter due to reduced volatility in interest rates and a resurgence in institutional investment. The Southeast and Sunbelt regions continue to see heightened rent growth and absorption, driving further portfolio-level transactions.
As a major player in the global commercial real estate sector, Newmark is committed to delivering exceptional service across the property lifecycle, serving clients from diverse backgrounds, from large institutional investors to startups. With revenues exceeding $3.1 billion reported for the twelve months ending September 30, 2025, Newmark has established a robust operational footprint with roughly 170 offices and 8,500 professionals across four continents.
To gain insights into Newmark’s comprehensive range of services or to learn more about industry trends, visit nmrk.com.
Conclusion
The recent financing arrangement underscores Newmark's strong position in the commercial real estate advisory landscape and showcases West Shore's ambitious growth strategy in the thriving multifamily market. As market conditions evolve, it will be intriguing to monitor how these transactions shape the landscape of multifamily investments in the U.S. and how Newmark continues to innovate and support its clients in a highly competitive environment.
Topics General Business）
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