Dwight Capital Provides $42M HUD Loan on Washington Rental Property

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New York-based alternative lender Dwight Capital has provided $42.3 million in HUD-backed debt to a private owner based out of Southern California to refinance Belleau Woods Apartments in Bellingham, Wa., Commercial Observer has learned. 

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This U.S. Department of Housing and Urban Development (HUD) Section 223(f) mortgage refinanced previous HUD debt on the apartment complex. The deal closed on June 26. 

HUD Section 223(f) debt is long-term financing priced low and for the purpose of refinancing or acquiring existing multifamily products. It’s insurance shields lenders from losses on mortgage defaults.

Dwight managing principal Josh Sasouness and managing director Josh Hoffman originated the mortgage. 

Belleau Woods Apartments is located at 4000-4024 Northwest Avenue in Bellingham, a town situated in Northwest Washington state, just south of Vancouver, British Columbia. It’s a garden-style rental community that was originally built in 2003 and went through an expansion in 2008, according to information from Dwight.

The 15.85-acre site sports 17 three-story apartment buildings, comprising 339 units, ranging from 525 square feet to over 1,000 square feet, as well as a clubhouse, fitness center and playground, according to its website. Underground and off-street parking is also available. 

Monthly rents range from $980 for one-bedroom apartments to just over $1,500 for two-bedroom units with two and half bathrooms, according to information from ApartmentRatings.com. The property’s website broadly lists its monthly rental rates at $700 to $1,700.