Dealmaker: Dwight Capital Closes $121M in HUD 223(f) Financings

Dwight Capital, New York, closed $121.3 million in HUD 223(f) financings during June.

Dwight Managing Principal Josh Sasouness originated a $45 million HUD 223(f) cash-out refinance for Prairie Gate Community, a 264-unit garden-style property in Grand Prairie, Texas.

Built in 2019, Prairie Gate Community has eight three-story residential buildings, a clubhouse/leasing office and 15 garage buildings on 14.5 acres. The loan benefitted from a Green Mortgage Insurance Premium reduction set at 25 basis points because Prairie Gate Community qualifies as green/energy-efficient housing.

Sasouness also originated a $41.8 million HUD 223(f) refinance for Mi-Place at West Rancocas, a 232-unit apartment and townhome property in Mount Holly, N.J. Built in 2015 and 2016, Mi-Place at West Rancocas has 10 three-story apartment buildings, one row of two-story townhouses and a clubhouse situated on 13-plus acres. In January, Dwight closed a $39 million bridge loan for Mi-Place to pay off existing bank debt with an upcoming step-up in prepayment penalty and then subsequently paid off the bridge loan with a HUD loan in June.

Dwight also financed a $34.5 million HUD 223(f) loan for Central Park Estates, a 254-unit townhome-style apartment community in Novi, Mich. Built between 2001 and 2003, the property has 43 two- and three-story residential buildings, a clubhouse/leasing office and a gate house. The apartments include private entries with attached garages and gas fireplaces. This loan also benefitted from a Green MIP Reduction because Central Park Estates, through the refinance, obtained National Green Building Standard certification. This was the third HUD refinance that Dwight closed for the property. Managing Directors Josh Hoffman and Kevin Lifshitz originated this transaction.