Dwight Mortgage Trust Closes $384M Multifamily Mortgage Through Freddie Mac

Dwight Mortgage Trust (DMT) has closed the largest multifamily mortgage loan deal in more than two years through Freddie Mac (FMCC)’s Q Series securitization program, Commercial Observer has learned

The $383.5 million floating-rate transaction designated as FHMS 2024-Q029, which was DMT’s first Q-Deal, consists of nine loans backed by “value-add” multifamily properties in eight states. It was the largest Q Series deal since a $424 million FREMF 2022-Q018 transaction from Acre Credit Partners that priced in October 2022. 

The largest loan in the pool of $100 million is secured by 124 West 124th Street, a newly completed 168-unit residential tower in South Harlem developed by Carthage Advisors that is 92 percent occupied as of September, according to DMT. Seven properties in the loan pool were completed between 2022 and 2023, with the other two having undergone “substantial” renovations since they were acquired in 2021. 

“This securitization showcases DMT’s dedication to supporting the affordable multifamily housing market while delivering compelling risk-adjusted returns for our investors,” Adam Sasouness, CEO of DMT, said in a statement. “We look forward to continuing our collaboration with Freddie Mac to provide vital liquidity to the multifamily sector.”

The sponsors of the properties in the Q-Deal plan to deploy additional capital for improvements and enhancements that can drive long-term value to the assets, according to DMT. 

Dwight Capital, the parent company of DMT, will act as loan servicer for the Q-Deal.

DMT, the real estate investment trust affiliate of Dwight Capital, has an aggregate principal balance of more than $5.2 billion, according to the company. 

Andrew Coen can be reached at acoen@commercialobserver.com