Dealmaker: Dwight Capital Secures $68M For Mixed-Use, Multifamily Assets

Dwight Capital, New York, secured $63.1 million to refinance Park Pacific Apartments, a 23‐story former Missouri Pacific Railroad Building converted to a downtown St. Louis, Mo. mixed-use property.

The 1920s-vintage property was substantially rehabilitated in 2011 into a mixed-use development with 230 rental apartments, 48,000 square feet of Class A office space and 28,000 square feet of ground-floor retail.

Dwight Capital Deputy Chief FHA Underwriter Gary Amey Jr. said Park Pacific Apartments qualified for the FHA 223(a)(7) program. “This refinance enabled The Lawrence Group to improve the energy-efficiency of the property and significantly reduce its annual debt service payments by almost $300,000,” he said.

Amey noted Dwight Capital worked with HUD offices in both Fort Worth, Texas and Kansas City to close the deal, which also incorporated historic tax credits, tax increment financing and subordinate debt.

The deal represented the second-largest transaction in Dwight Capital’s history.

Dwight Capital also arranged a $4.95 million FHA 223(f) refinance for QLS Gardens Apartments, a 202-unit mixed-income apartment community in Atlanta. Amey noted sponsor Quality Living Services Inc. funded several major capital expenditures through the loan to further improve the property’s condition.