Dwight Capital Closes $50M Refi for California Apartments
By Andrew Coen July 28, 2025 8:00 am
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The Vernon Group has inked $49.7 million of U.S. Department of Housing and Urban Development-backed debt to refinance a newly built multifamily complex in California’s Santa Barbara County, Commercial Observer has learned.
Dwight Capital closed the HUD 223(f) loan for the developer’s Elements Apartments, a 167-unit property completed in 2023 in Santa Maria, Calif. Loan proceeds will be used to pay off existing debt, cover closing costs, establish a replacement reserve for future capital improvements and draw on accrued equity since a prior construction loan, according to Dwight.
Dwight’s Josh Hoffman and Jonathan Pomper originated the transaction.
Located at 3519 Mercury Drive 60 miles north of Santa Barbara, the property consists of 49 studios, 74 one-bedrooms, 20 two-bedrooms and 24 three-bedrooms. Community amenities include a rooftop sun deck, a fitness center, a dog park, fire pits and a picnic area with grilling stations.
Bradley Vernon, president and partner of the Vernon Group, said in a statement that Dwight “did an excellent job guiding us through and successfully completing the HUD process.”
The deal qualified for a green mortgage insurance premium (MIP) reduction to 0.25 percent, since the property has earned a GreenPoint Rated silver-level certification. HUD announced last month plans to streamline MIPs for all Federal Housing Administration-backed multifamily loans to 25 basis points regardless of the property’s green energy standards.
Andrew Coen can be reached at acoen@commercialobserver.com.
