Ten South Receives $183M for Bay Area Mixed-Income Project
It's the lender's largest such loan to date.
Ten South Construction has obtained $183 million in construction financing for a 530-unit multifamily community located at 315 Las Animas Ave. in Gilroy, Calif. The project is expected to finish construction in 2029.
Dwight Mortgage Trust, an affiliate REIT of Dwight Capital, provided the loan. At its size, the loan is the largest construction financing in Dwight’s history. Managing Director Keith Hoffman and Elliot Haft originated the note on behalf of the developer.
When it comes online, the property will include four mid-rise apartment buildings, 33 townhomes, a clubhouse and a leasing office. Some 243 units will be income-restricted, reserved for households earning 60 percent and 80 percent of area median income. The remaining 287 townhouses will be market rate.
READ ALSO: How the Affordability Crisis Could Be Solved Within a Generation
The development will occupy more than 27 acres, and the site will have bioretention basins alongside 2.7 acres of green open space, which will include landscaping, vegetation, walking paths and a dog park.
Gilroy is in Santa Clara County, which is part of the San Jose-Sunnyvale-Santa Clara MSA along San Francisco Bay. The county is the second-most expensive countywide rental market in the United States, according to HUD data. Santa Cruz County, along the California coast south of the Bay Area, tops the category.
Rents still grow in the Bay Area
Though already at record highs, year-over-year in early 2026, rents rose 1.9 percent in the San Francisco-area multifamily market, according to Yardi Matrix data. That is the fifth-strongest performance among the 30 metros the company tracks.
The occupancy rate in stabilized Bay Area properties also continued to climb, up 40 basis points year-over-year to 95.8 percent in November. Though initiatives to develop more housing are in the works, supply growth moderated in the region in 2025, with 5,811 units delivered and 10,851 underway, Yardi Matrix notes.
In April, Mission Housing Development Corp., in partnership with the Mission Economic Development Agency, secured a $77.9 million financing package for the first phase of an affordable housing project in San Francisco’s Mission District. Known as The Marvel in the Mission, or La Maravilla, the development is the largest affordable housing development in the area.
