Dwight Capital and its affiliated real estate investment trust, the Dwight Mortgage Trust, have launched a commercial real estate rescue capital fund aimed at helping underfunded backers, Dwight Capital announced Tuesday. Through the fund, the Dwight Mortgage Trust is expected to deploy $2 billion in new loan originations this year.
The bailout capital fund is a platform for preferred equity and mezzanine debt to help sponsors with capital shortfalls related to permanent loan refinancings, the company said. The rescue capital strategy targets independent living and assisted living properties, as well as multi-family, mixed-use, office and commercial properties valued between $10 million and $75 million.
The preferred equity and mezzanine capabilities add to existing bridge loan and construction loan products, said Tim Groves, chief investment officer at Dwight Capital.
Dwight Capital and Dwight Mortgage Trust financed $192.29 million in senior housing and healthcare financing during the third quarter of 2022. Transactions included, among others, bridge loans for a skilled nursing portfolio in New Hampshire and a portfolio of Tanglewood properties in New York.
Dwight Mortgage Trust partners with Miami-based real estate private equity firm 27 Capital in the bailout capital fund.
“We couldn’t ask for a better partner than Dwight for this strategy,” said 27 Capital founder Arash Gohari. “Dwight’s national reach and immense access to capital, along with his loyal and diversified borrower base, is the perfect platform on which to build this strategy.”