Highgates Lands $97M Refi for Kentucky Portfolio
Walker & Dunlop arranged the financing.
Highgates Group has obtained $96.7 million in refinancing for a three-property, 640-unit multifamily portfolio in Louisville, Ky. Walker & Dunlop arranged the three floating-rate, interest-only loans from an institutional lender.
The borrower will use the funding to repay existing debt, return capital to investors and fund closing costs. The projects were recently completed.
One of the communities recapitalized is Belmond Flats, consisting of 240 units. Located at 7610 Chelsea Gardens Circle, the three-story, 10-building property has two- and three-bedroom floorplans ranging from 872 to 1,559 square feet.
In 2021, Highgates took out a $14.2 million construction loan for this new apartment construction, according to Yardi Matrix information. WesBanco Bank provided the note.
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Highgates also refinanced Cedar Creek Flats, comprising 168 units across seven residential buildings. The community at 7703 Cedar Creek Road has the same apartment layouts.
Previous financing included a $20.4 million loan from the same lender, the data provider shows. The note was originated in 2023.
The last community refinanced is the 232-unit Glengrove Apartments, slated for completion this year in June, according to Yardi Matrix. The two- and three-story, 10-building property is located at 12306 Glengrove Circle, some 19 miles away from the other two communities.
Common-area amenities across the entire portfolio include a clubhouse, playground, swimming pool and fitness center.
Multifamily loan originations keep steady
As of last year’s third quarter, multifamily loan originations saw a 27 percent increase year-over-year, according to a Mortgage Bankers Association report. However, compared to the previous quarter, this figure only rose 12 percent.
In one of the largest refinancings of 2025, Blackstone obtained a $465 million debt package originated by Morgan Stanley Mortgage Capital Holdings and Natixis Real Estate Capital, with Deutsche Bank as trustee. The financing included a $435 million CMBS note and a $30 million mezzanine loan, which back a five-community collection totaling 1,717 units.
