Newmark has arranged a $115.6 million refinancing for two multifamily communities in East Lyme, CT, securing long-term agency debt on behalf of its client. The financing recapitalizes The Cove at Gateway Commons and Sound at Gateway Commons, a pair of apartment properties situated along Connecticut’s southeastern shoreline.
According to Newmark, the firm’s Capital Markets Strategies team sourced the new Freddie Mac loan to refinance the existing debt on the two assets. Managing director Avi Kozlowski led the assignment and secured a 10-year fixed-rate loan through Freddie Mac, aligning the new financing with the client’s longer-term ownership objectives.
Kozlowski noted that the team was pleased to deliver financing that supports the sponsor’s strategy while successfully executing on the client’s behalf. The transaction underscores the continued ability of Freddie Mac to provide fixed-rate capital for stabilized multifamily communities, even as borrowers navigate changing market conditions and capital costs.
The Cove at Gateway Commons and Sound at Gateway Commons are positioned to benefit from their location near the coast and key employment and transportation nodes in southeastern Connecticut. Residents have access to the area’s coastal amenities as well as nearby employment centers, reflecting the properties’ role as housing options for workers in the surrounding region.
The communities also offer strong regional connectivity. The properties are located close to Interstate 95 and Interstate 395, which provide north-south and east-west access across Connecticut and link East Lyme to major regional markets. From the properties, residents can reach New Haven, Providence and Boston via the highway network, reinforcing the appeal of the location for commuters and mobile professionals.
Sound at Gateway Commons is configured as a garden-style apartment community offering a range of floor plans from studio to three-bedroom units. This mix provides options for a variety of household types, from single renters to larger households seeking more space in a multifamily setting.
The Cove at Gateway Commons complements its sister property with one-, two- and three-bedroom apartments and townhomes. These residences feature attached garages and larger-format layouts, appealing to residents who prioritize additional living space and direct access parking while still living in a multifamily community.
The refinancing through Freddie Mac helps position both properties for continued operation under the current ownership’s business plan, supported by long-term, fixed-rate debt. The combination of location, access to regional transportation and diversified unit types underpins the investment thesis for the two communities as part of the broader southeastern Connecticut multifamily market.
Photo courtesy of Simon Konover.
