Dwight Securities Management, which serves as the investment adviser for Dwight Mortgage Trust and operates as an affiliate of Dwight Capital, recently announced an exciting development in its funding capabilities. The firm has successfully secured capital that will enable it to originate construction loans totaling up to $1 billion. These loans will specifically target multifamily properties across the United States, reflecting a strong commitment to enhancing housing options in various communities.
This new round of capital raising is a significant step for Dwight, as it helps to expand the company’s loan origination efforts. To date, Dwight has successfully closed loans amounting to $3 billion this year alone. With this new funding, the firm aims further to increase its influence in the real estate lending landscape. Additionally, this capital will strengthen Dwight’s existing servicing portfolio, which currently stands at $13 billion.
The construction loan program that Dwight is implementing is designed to focus on loan amounts ranging from $30 million to $200 million. This structure is designed to offer flexibility and provide ample opportunities for potential borrowers. The loans will allow for a loan-to-cost ratio of up to 80%, making it easier for developers to secure the necessary funds to complete their projects. Furthermore, the loans will feature competitive floating interest rates, which will be determined based on various factors, including property fundamentals, the strength of the sponsoring entity, and the specific strategy of each project.
Dwight’s approach emphasizes a strong focus on major multifamily markets in the United States. The firm seeks to collaborate with experienced and reputable sponsors who demonstrate a solid track record. By partnering with these best-in-class sponsors, Dwight aims to identify lending opportunities that are well-structured and come with defined exit strategies. These strategies may include options such as HUD and Agency programs, which offer additional avenues for securing financing.
KEY QUOTES:
“Banks have significantly reduced their construction lending exposure in recent years due to heightened regulatory capital requirements and shifting risk appetites, and we do not expect them to return in a meaningful way in the near future. This capital raise underscores the growing institutional demand for high-quality, asset-backed credit in the U.S. multifamily sector, and positions Dwight as a reliable partner for experienced sponsors delivering much-needed housing in key markets.”
Adam Sasouness, CEO of Dwight
