Dwight Capital Provides $60M HUD Loan for Salt Lake City Apartments

Lotus Company has sealed $60 million of U.S. Department of Housing and Urban Development (HUD)-backed debt to develop a Salt Lake City multifamily project, Commercial Observer can first report.

Dwight Capital closed the HUD 221(d)(4) construction loan for the planned 184-unit Lotus Alchemy development in Downtown Salt Lake City. Terms for the nonrecourse transaction enable interest-only payments for 24 months before automatically converting to a 40-year, fully amortizing loan, according to Dwight.

“Lotus Alchemy reflects our continued commitment to mindfully create and deliver high-quality, mixed-use projects in strong urban markets like Downtown Salt Lake City,” Steven Blomquist, director of development at Lotus Company, said in a statement. 

The HUD financing, which was originated by Dwight’s Brandon Baksh, received an expedited approval process from the utilization of a “straight-to-firm” HUD application that eliminated the preliminary application stage, according to the lender. 

Located at 48 West 700 South, Lotus Alchemy will feature a six-story residential building with 9,000 square feet of retail that includes a restaurant and a two-level parking garage. Community amenities will include a swimming pool, a spa, a two-story fitness center, a dog wash station, a barbeque area and a community fire pit.

The project received necessary approvals from the Salt Lake City Planning Commission in August 2025 after Lotus Company modified the project to have fewer units and parking spaces. 

Andrew Coen can be reached at acoen@commercialobserver.com.