West Shore to Secure $600M for National Portfolio

October 22, 2025

Finance & Investment Market Rate National News

The firm will use the debt to refinance five properties and acquire three others.

West Shore is on track to receive a $600 million loan package for the refinancing and acquisition of eight garden-style and mid-rise properties encompassing 3,241 units across six states, according to credit rating agency Fitch and a report by Morningstar DBRS.

The debt includes a $550 million CMBS note issued and sold by Citi Real Estate Funding with Deutsche Bank as trustee, as well as Trimont and Argentic Services as master and special servicer, respectively. Additionally, the financing also comprises a $50 million mezzanine loan.

Proceeds will serve to fund the $332.9 million purchase of 1,496 units across three assets in South Carolina, Ohio and Florida. The loan will also refinance $252.8 million of existing debt across five communities totaling 1,745 units in Florida, Virginia, North Carolina and Kentucky.

West Shore purchased the five properties between 2016 and 2024, investing $12 million in capital improvements across them. The value-add strategy raised the weighted average occupancy from 90.0 to 94.2 percent, while also improving the net operating income by 54.9 percent. The company further plans to invest $28.9 million in renovations across the eight communities.

The entire collection has an occupancy of 93.4 percent and a total appraised value of $785.1 million. The average asking rent across the assemblage clocks in at $1,656, while the average unit size is 1,014 square feet.

CMBS issuance, special servicing rate go up

Lenders issued nearly $92.5 billion in domestic, private-label CMBS loans year-to-date through September, according to a Trepp analysis. The volume is close to overtake 2024’s total issuance of $104.1 billion and, should market conditions hold, 2025 could wrap up with $123 billion of deals, the largest annual volume since 2007.

As originations increase, so too does the special servicing rate. In September, the index stood at 10.65 percent overall, up 186 basis points year-over-year, a different Trepp report shows. Across CMBS multifamily financing, 8.20 percent of loans were in special servicing, up from just 6.07 percent last year.