Dwight Mortgage Trust Starts Rescue Capital Fund
The platform will target properties valued between $10 million and $75 million.
Dwight Capital and its affiliate REIT Dwight Mortgage Trust are launching a commercial real estate rescue capital fund to aid sponsors with equity shortfalls. The rescue capital mezzanine debt and preferred equity platform will assist in connection with the refinancing of permanent loans.
Also partnering on the fund is 27 Capital led by Arash Gohari.
The rescue capital fund targets a variety of property types including retail, mixed-use, multifamily, office and independent and assisted living assets throughout the nation. The target value of the properties lies between $10 million and $75 million.
Due to a turbulent macroeconomic environment, it is expected that loan maturities in 2023 will experience lower-than-expected proceeds and high rates, Adam Sasouness, co-founder of Dwight Capital and Dwight Mortgage Trust, said in prepared remarks. Further, floating rate bridge loans, as well as most loans, may not achieve neutral refinancing.
To mitigate these, the fund will offer solutions to bridge the gap to recapitalization and future stabilization.
Through creative financing solutions, and in conjunction with Dwight Mortgage Trust’s bridge loan and construction lending products, it is anticipated that Dwight Mortgage Trust will deploy more than $2 billion in new loan originations this year.