Dealmaker: Dwight Capital Funds $70M in Multifamily Loans

Dwight Capital, New York, secured $69.9 million for multifamily properties in New York, Tennessee and Delaware.

In Williamsburg, Brooklyn, N.Y., the firm secured a $26 million HUD 223(f) loan for 88-unit market-rate apartment building The Williamsburg. The non-recourse fixed-rate loan had a 35-year term with a flexible step-down prepayment schedule.

Dwight Capital Chief Operating Officer Tyler Griffin noted the asset’s value increased “substantially” since construction, so the owner decided to refinance the property and extract equity. “The project qualified for a lower mortgage insurance premium due to its Silver LEED Certification,” she said. “Additionally, the owners were able to decrease their replacement reserves from over $900 per unit to $250 per unit.”

Griffin said the building’s green features include construction using recycled and regional materials, renewable wood, low-emitting materials and energy-efficient appliances. “Its location in south Williamsburg offers residents quick access to New York’s bustling art, music, culinary and craft scene,” she said.

In Seviersville, Tenn., Dwight Capital Managing Director Brandon Baksh arranged a $15.9 million construction loan for phase two of Overlook at Allensville Square. The firm arranged $11.8 million for the property’s first phase last year.

“After refinancing the first phase of the Overlook at Allensville project almost a year ago, we were able to implement HUD’s ‘straight to firm 221(d)(4) application’ for the second phase of this project,” Baksh said. “There has been a waiting list for some time now for the first phase and with these new units we will be one step closer to meeting that demand.”

Dwight Capital also funded and closed a $28 million 223(f) HUD loan for 300-unit Middletown Apartments in Middletown, Del. The property is certified for Energy Star status, which enabled the owner to realize a 35-basis point interest rate reduction. The 80 percent loan-to-value loan yielded cash-out proceeds to the sponsor.