Dwight Capital and its affiliated real estate investment trust, Dwight Mortgage Trust, have launched a commercial real estate rescue capital fund meant to aid sponsors with equity shortfalls, Dwight Capital announced Tuesday. Through the fund, Dwight Mortgage Trust is expected to deploy $2 billion in new loan originations this year.
The rescue capital fund is a preferred equity and mezzanine debt platform to assist sponsors with equity shortfalls related to permanent loan refinancings, the company said. The rescue capital strategy targets independent living and assisted living properties as well as multifamily, mixed use, office and retail properties valued $10 million to $75 million.
The preferred equity and mezzanine capabilities join existing bridge loan and construction lending products, Dwight Capital’s Chief Investment Officer Tim Groves stated.
Dwight Capital and Dwight Mortgage Trust financed $192.29 million in senior housing and healthcare financing during the third quarter of 2022. The transactions included, among others, bridge loans for a New Hampshire skilled nursing portfolio and a portfolio of Tanglewood properties in New York.
Dwight Mortgage Trust is partnering with Miami-based real estate private equity firm 27 Capital on the rescue capital fund.
“We could not 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 their loyal and diversified borrower base is the perfect platform on which to build this strategy.”