Photo Credit: Commercial Observer
Dwight Capital, along with its affiliated REIT, Dwight Mortgage Trust (“Dwight”) is launching a “rescue capital” preferred equity and mezzanine debt platform to assist sponsors with equity shortfalls in connection with permanent loan refinancings.
Given the current rate environment, Dwight expects a significant percentage of loans closed over the past several years - particularly floating rate bridge loans - will be unable to achieve cash neutral refinancing via HUD, Fannie Mae, Freddie Mac, or CMBS.
Dwight's rescue capital strategy targets multifamily, mixed use, office, retail, independent/assisted living properties valued between $10 million and $75 million throughout the United States.
"Together with our existing bridge loan and construction lending products, the added preferred equity and mezzanine capabilities will assist Dwight Mortgage Trust in deploying over $2 billion of new loan originations in 2023,” according to Chief Investment Officer, Tim Groves.
“Given the unprecedented number of loan maturities coming due in the next year, we want to be there to help our partners get through this period of lower-than-expected proceeds and higher than expected rates by providing them with solutions that will help them bridge the gap to recapitalization and future stabilization by providing them with creative financing solutions.” said Adam Sasouness, co-founder of Dwight Capital and Dwight Mortgage Trust.
DMT is partnering with Miami based 27 Capital, a real estate private equity firm founded and led by Arash Gohari, on this initiative.
“We could not ask for a better partner than Dwight for this strategy. Dwight’s national reach and immense access to capital, along with their loyal and diversified borrower base is the perfect platform on which to build this strategy.” said Arash Gohari.