Dwight Securities To Target up to $1B in Multifamily Construction Loans After Capital Raising
As banks have pulled back on lending construction loans, Dwight Securities Management LLC is looking to get involved. The affiliate of Dwight & Co. announced it has raised capital that will allow it to provide as much as $1 billion in construction loans through the national multifamily sector.
This initiative is anticipated to target investments ranging from $30 million to $200 million. Dwight said that the proceeds will be available at up to 80 percent of the loan-to-cost. The structuring will carry floating interest rates, which depend on project strategy, asset fundamentals and sponsorships.
“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,” Adam Sasouness, CEO of Dwight Capital, said in a statement.
“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.”
The move continues an eventful 2025 across lending for Dwight. In August alone, the firm provided $404 million across two deals: a bridge loan for a Bronx, New York, multifamily community and a garden-style apartment property in Houston, Texas. In the previous month, Dwight provided $569 million across two properties, one in Colorado Springs and Santa Maria, California. Year-to-date, Dwight said it has closed $3 billion in total loans.
The lender said that multifamily will continue to be a major focus in the future for the Miami-based company, with agency and HUD programs part of the target.
Some investors might find an attraction to multifamily credit. This is because Trepp recently noted that $120 billion in multifamily loans is set to mature over the next 18 months, with all featuring in-place debt service coverage ratios below 1.20x. Trepp Senior Manager of Research Thomas Taylor noted that this could create buying opportunities in the sector.
Source: GlobeSt/ALM