Dealmaker: Dwight Capital Funds $64M

Dwight Capital, New York, secured $64.2 million in FHA financing for affordable and market-rate multifamily properties in Nashville, Tenn. and Las Vegas.

In Nashville the firm secured a $31 million FHA 221(d)(4) loan to substantially rehabilitate Haynes Garden Apartments, a 208-unit project-based Section 8 apartment community. The 40-year loan was funded in conjunction with 4 percent Low-Income Housing Tax Credits and a HUD Housing Assistance Payment contract renewal.

Dwight Capital Chief FHA Underwriter Duncan Mendelsohn said the transaction needed to close on a tight timeline due to its tax credit status. “The local housing authority awarded tax credits to the owner, who would have lost the tax credits if we had failed to close in time,” he said.

Mendelsohn said with only six months remaining to close, Dwight worked with the Atlanta HUD office for a timely execution.

Dwight Capital also financed a $33.2 million HUD 223(f) cash-out loan on Amalfi Apartments, a 264-unit Las Vegas property. The Class A asset earned an Energy Star certification in conjunction with the refinance, which enabled the owner to receive a 25 basis point FHA Mortgage Insurance Premium reduction.

Mendelsohn said the process took exactly six months from engagement to closing.