Dwight Capital Lends $128M Hand in DC
- Aug 16, 2016
Washington—Dwight Capital has funded a $128 million FHA/HUD loan on City Market @ O, a LEED Silver certified mixed-use building consisting of 400 luxury apartments, 182 Cambria Suite hotel rooms and an 86,236-square-foot retail component on the ground floor.
“The 223(a)(7) allowed us to modify the interest rate and MIP on the existing HUD,” Josh Sasouness, Dwight Capital managing principal, told Commercial Property Executive. “As a result, the owner was able achieve over $725,000 in annual debt service savings.”
The retail space includes a Giant grocery market, Starbucks, Dolci Gelati and Convival.
The project is located in the heart of Washington, D.C.’s historic Shaw neighborhood, close to three metros.
“The project itself is tremendous. Using the 220 program, it was designed to be the center of this community, and as you can tell it very much is that,” Sasouness said. “This being the largest 223(a)(7) in HUD’s history makes me very proud of Dwight Capital and thankful to Roadside Development for the opportunity.”
Dwight Capital has had a busy summer, closing 15 FHA/HUD loans exceeding $317 million in the past couple of months.
According to Sasouness, one of the aspects that Dwight prides itself on is staying on top of HUD’s new guidelines as they are released. The newest of which is HUD’s Green Initiative that allows for a reduction in the Mortgage Insurance Premium.
Dwight was able to close five loans utilizing this new guidance, including the $32.8 million HUD223 (f) loan for The Venicia, a luxury apartment complex in Las Vegas; the $28.7 million HUD 223(a)(7) funding for Lofts at Reynolds Village in Woodfin, N.C.; the $28.1223 million (f) funding for Villa Lucia, a luxury complex in Fresno, Calif.; and the $15.8 million 223(a)(7) for InterPointe Apartments in Billings, Mont. The MIP savings for these projects ranged from 25 to 40 basis points.
Other loans funded in July were the $23.6 million funding for Henson Creek, an affordable housing complex in Fort Washington, Md.; the $1.5 million funding for Burlington Square, a 51-unit low-income housing in Missoula, Mont.; $2.5 million in funding for Eagle Ridge II, a 60-unit low-income housing complex in Rapid City, S.D.; and the $1.32 million in funding for Hurricane, an apartment complex in Hurricane, W.V.