Dwight Capital closed a $34MM 40-year fixed rate HUD 221(d)(4) new construction loan for Harbor Heights II, a 123-unit proposed apartment community in Mystic, CT. The property will be the second phase of the neighboring sister property, Harbor Heights, which Dwight refinanced in 2022 with a HUD 223(f) loan. Harbor Heights II will consist of one four-story apartment building featuring one, two, and three-bedroom units and is situated on 5.81 acres. Its amenities will include a business center, dog wash and park, swimming pool and spa, fitness room with yoga studio, outdoor fire pit/BBQ, and a gathering area with a fireplace, café, and kitchen.
Due to the HUD-experienced development team and strength of the market, the project successfully bypassed HUD’s preliminary application stage and submitted a “straight-to-firm” application, resulting in significant time savings for the borrower.The loan also benefitted from a Green Mortgage Insurance Premium (“MIP”) Reduction set at 25 basis points because the property will achieve a National Green Building Standard (“NGBS”) Bronze certification. Vice President Daniel Malka and Jacob Gauptman originated this transaction.