Dwight Capital and its affiliate REIT, Dwight Mortgage Trust (DMT), completed $663.2 million of real‑estate financing in May 2026, marking the firm’s strongest month this year. The activity featured a $114 million HUD 221(d)(4) loan—the largest multifamily HUD loan in Wisconsin history—and several other sizable multifamily and mixed‑use loans, underscoring the lender’s role in financing large‑scale development projects.
Record HUD 221(d)(4) Loan for 100 East Wisconsin
The headline transaction was a $114 million HUD 221(d)(4) substantial rehabilitation loan for the conversion of 100 East Wisconsin, a 34‑story office building slated to become a 373‑unit luxury apartment community. The loan is the largest multifamily loan ever approved by HUD’s Midwest Region Office and the biggest HUD 221(d)(4) construction loan in Dwight Capital’s history. The building, only 35 years old, was added to the National Register of Historic Places on 16 January 2025, qualifying it for federal and state historic tax credits. Milwaukee contributed a tax‑increment financing package of up to $16.6 million through a newly created tax increment district. Loan proceeds will fund construction and permanent financing. The loan was originated by Managing Director Keith Hoffman and Jack Tawil on behalf of developers Klein Development (Joe Klein, Michael Klein, Derek Schneider) and MOS R.E. (Johnny Vassallo).
Additional Multifamily and Mixed‑Use Financing
Dwight Capital also provided a $66 million HUD 221(d)(4) construction loan for The Lariat at Abilene, a 312‑unit luxury multifamily project on 13 acres near Blue Cross Blue Shield and Dyess Air Force Base in Abilene, Texas. Partners Brandon Baksh and Tommy Ng originated the loan for repeat client Austin Martin of Martin Inderman Development.
DMT closed a $55 million new‑construction loan for 10 Ashel Lane, a 104‑unit mixed‑use development in Kaser, New York. The project includes 45,000 sq ft of ground‑floor commercial space for a kosher grocer and an urgent‑care provider, targeting the growing population of Rockland County’s hamlet of Monsey. Katie Goldenberg originated the loan for sponsor Simon Dushinsky of Sky Equity Group, with arrangement services provided by Steven Hersko of The SHB Group.
Market Signal: Continued Demand for HUD‑Backed Multifamily Capital
The concentration of HUD 221(d)(4) loans in May 2026 reflects sustained lender and developer interest in federally backed multifamily financing, particularly for historic‑preservation and luxury‑segment projects. The Wisconsin loan’s size and the accompanying municipal tax‑increment financing illustrate how local governments are leveraging public tools to attract private capital for high‑density housing. Similarly, the Texas and New York loans demonstrate Dwight Capital’s geographic diversification and willingness to fund projects that align with regional employment hubs and demographic trends.
Key Takeaways
- Dwight Capital and DMT closed $663.2 million in real‑estate loans in May 2026, the firm’s strongest month of the year.
- The $114 million HUD 221(d)(4) loan for 100 East Wisconsin is the largest multifamily HUD loan ever approved by HUD’s Midwest Region Office and the largest of its kind in Dwight Capital’s history.
- Additional loans included a $66 million HUD loan for The Lariat at Abilene, TX, and a $55 million mixed‑use loan for 10 Ashel Lane in Kaser, NY.
FinanceInsyte's Take
These transactions highlight Dwight Capital’s capacity to structure large, federally backed loans across diverse markets, a capability that may be attractive to developers seeking reliable financing for historic‑preservation and luxury multifamily projects. While the firm’s activity signals confidence in HUD programs, the reliance on public incentives such as tax‑increment financing introduces variables that could affect future deal economics. Executives should monitor HUD policy updates and local incentive structures when evaluating similar financing opportunities.
Source: Businesswire
