Newmark Arranges $52 Million Cash-Out Refinance for The Bascom Group's Cantera at Towne Lake in Cypress, Texas

Newmark has arranged a $52 million cash-out refinance for Cantera at Towne Lake, a 366-unit, Class A garden-style multifamily community located in Cypress, Texas, a high-growth suburb northwest of Houston, the firm announced June 22, 2026.

The borrower is The Bascom Group. Newmark Multifamily Capital Markets Executive Managing Directors Vince Punzi and Lowell Takahashi arranged the financing through a debt fund. The loan was structured to include $4.42 million in capital expenditure reserves earmarked for a new round of renovations, along with prepayment flexibility aligned with the borrower's strategic business plan.

Refi Over Sale: The Strategic Rationale

According to Punzi, The Bascom Group weighed a potential disposition of the asset before ultimately opting for a refinance. "After carefully evaluating a potential disposition of the asset, The Bascom Group determined that a refinance offered the strongest path forward — one that allowed the firm to return capital to its investors while preserving long-term upside," Punzi said.

Punzi also noted the competitive nature of the financing process. "This refinance was a prime example of just how competitive the capital markets have become — with debt capital outpacing available transactions, the bidding process was among the most competitive we have seen," he said. "It is particularly notable given the asset was acquired post-pandemic and was able to achieve a cash-out refinance."

Property Profile: Cantera at Towne Lake

Constructed in 2008, Cantera at Towne Lake offers a mix of one-, two- and three-bedroom luxury apartment homes. Community amenities include a 24-hour fitness center, two resort-style pools, outdoor grilling areas, a conference center and landscaped grounds.

The property is situated within the Towne Lake master-planned community and offers access to Highway 290, the Grand Parkway and key employment and retail corridors throughout Cypress and greater northwest Houston. Residents have proximity to The Boardwalk at Towne Lake, as well as access to the Cypress-Fairbanks Independent School District, which the release describes as highly regarded.

The $4.42 million in capital expenditure reserves — approximately $12,000 per unit — is earmarked for a renovation program intended to capture rental upside at the property.

Cypress Submarket Fundamentals

The Cypress submarket continues to benefit from what Newmark described as strong economic fundamentals and a constrained supply pipeline, with limited new multifamily deliveries expected over the coming years. The firm said these conditions reinforce the investment thesis for continued capital improvements at Cantera at Towne Lake and position the asset to capture rental upside through the renovation program.

Newmark Group, Inc. (Nasdaq: NMRK) reported revenues of more than $3.4 billion for the twelve months ended March 31, 2026, and operates from more than 185 offices with more than 9,600 professionals across four continents.

Sources: Newmark Press Release, June 22, 2026