Dealmaker: Dwight Capital Closes $139M in Multifamily Loans

Golden Gate Townhomes

Dwight Capital, New York, closed $138.9 million in HUD multifamily loans in six states.

Dwight Vice President Ari Mandelbaum and Originator Jack Harary closed $20.1 million in bridge financing for Golden Gate Townhomes, a 316-unit townhouse-style apartment community in Stone Mountain, Ga. The property’s 36 residential buildings occupy 50-plus acres. Purchased completely vacant in 2012, the sponsor since spent $14 million to renovate the property including demolishing 88 fire-damaged units. So far 284 units have delivered with the remaining 28 scheduled to go online over the next few weeks.

A local bank funded Golden Gate’s initial phases but was not equipped to lend beyond that. The sponsor then utilized a bridge loan to refinance the bank loan and fund remaining unit construction. After having difficulty getting approval for construction draws, the sponsor funded most of the construction out of pocket. When most renovations were complete, he approached the bridge lender for a refinance to cash out his equity basis, but the lender declined. The sponsor then worked with Dwight, which agreed to fund the bridge loan refinance including $6.9 million of cash out.

Mandelbaum and Harary also closed a $12.6 million loan for Phillips Landing Apartments, a 144-unit community in Statesville, N.C. that dates to 2000. The HUD loan included a reduced mortgage insurance premium of 0.25 percent because the property qualified as green/energy efficient housing.

In Hattiesburg, Miss., Dwight Managing Director Brandon Baksh and Originator Brian Yee originated a $23 million 223(a)(7) loan on 228-unit market-rate community Cross Creek Village Apartments.

Dwight Capital also closed several HUD 223(f) loans. Executive Vice President Keith Hoffman originated $29.7 million for Autumn Creek Apartments in East Amherst, N.Y. Managing Director Kevin Lifshitz originated $17 million for The Meadows at Elk Creek in Elkton, Md. and Managing Director Josh Hoffman originated $36.5 million for Village at Wildcreek, a 240-unit garden-style property in Sparks, Nev.