Dwight Capital and its real estate investment trust, Dwight Mortgage Trust, have launched a commercial real estate rescue fund aimed at helping the backers in the same losses, Dwight Capital announced on Tuesday. Through the fund, Dwight Mortgage Trust expects to raise $2 billion in new loans this year.
The capital rescue fund is a similar level to the mezzanine debt capital to help sponsors with similar difficulties related to refinancing permanent loans, said the company. The salvage capital strategy is aimed at independent living and assisted living as well as multi-family, mixed-use, office and retail properties. $10 million to $75 million.
The equity and the ability of the mezzanine to combine with existing bridge loans and construction products, Dwight Capital’s Chief Investment Officer Tim Groves mentioned.
Dwight Capital and Dwight Mortgage Trust financing $192.29 million in senior housing and health care in the third quarter of 2022. The transaction included, among others, a bridge loan for a New Hampshire skilled nursing facility and a portion of the Tanglewood estate in New York.
Dwight Mortgage Trust is partnering with private equity firm 27 Capital on the capital rescue fund.
“We couldn’t have asked for a better partner than Dwight for this initiative,” said 27 Capital founder Arash Gohari. “Dwight’s national reach and extensive access to capital, along with a dedicated and diverse borrower base is the perfect foundation to build this plan on.”