Dwight Capital Refis Harlem Apartments With $114 HUD Loan

Rester Management has landed $114 million of U.S. Department of Housing and Urban Development-backed debt to refinance a newly built multifamily tower in Harlem, Commercial Observer has learned.

Dwight Capital supplied the HUD 223(f) loan for Rester’s 224 West 124th Street, a 19-story apartment building completed in 2023. Loan proceeds will retire a past $105 million bridge loan on the property from Dwight Mortgage Trust and establish a replacement reserve. 

“Over the last few years, HUD-insured financing has quickly become the hottest ticket in New York City,” said Adam Offman, managing director at Dwight, who originated the loan. “Between offering the longest term, lowest rate and highest proceeds, there is no comparable form of financing in the marketplace.” 

Located less than a quarter-mile from the Apollo Theater, the 168-unit property benefits from a long-term tax abatement under the former 421a Affordable Housing New York Voucher program since 30 percent of the units are restricted to residents earning no more than 130 percent of the area median income. Community amenities include a fitness center, a yoga room, a sauna, a children’s playroom, a business lounge and a rooftop deck with barbeque grills.

Montreal-based Rester Management acquired the site in 2017 for $27.8 million. 

Rester Management did not immediately return a request for comment.

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