Multifamily Construction Loan in Gilroy Sets Dwight Record

Dwight Mortgage Trust just issued its largest construction loan in its history.

Miami-based Dwight Mortgage Trust, Dwight Capital’s real estate investment trust affiliate, provided a $183 million construction loan for a 530-unit luxury multifamily community at 315 Las Animas Avenue in Gilroy, according to the company. Dwight’s Keith Hoffman and Elliot Haft originated the financing on behalf of developer Ten South Construction.

The site is currently 27 acres of empty land west of U.S. Route 101. When complete, the project will consist of four mid-rise apartment buildings, 33 townhome buildings and a clubhouse and leasing office. Of the 530 units planned, 243 will be designated as income-restricted affordable housing reserved for households earning between 60 percent and 80 percent of area median income, or between $123,300 and $164,400 in Santa Clara County, according to the California Department of Housing and Community Development. The remaining 287 residences will be market-rate.

Construction on the Las Animas Avenue development is expected to wrap up in 2029.

The homes will add necessary housing stock to the San Jose-Sunnyvale-Santa Clara metro area as the artificial intelligence boom increases demand for both housing and offices in Silicon Valley. Gilroy’s state-mandated housing targets require the city to plan for 1,773 new housing units by 2031.

Dwight’s $183 million construction financing is more than double — and even triple — the amount of similar packages issued across the country over the past year. In February, Dwight Mortgage Trust issued a $60 million construction loan for Ascendra Capital and BAM Development’s Seventeen Gables Condominium project in Miami, The Real Deal previously reported. And last fall, Irgang Group and Pramukh Realty secured $70 million in construction financing from Dwight Mortgage Trust for a 180-unit multifamily project in New York City’s Harlem neighborhood. Last summer, Dwight Mortgage Trust also issued a $155 million bridge loan to Beitel Group to refinance a 405-unit multifamily property in the Bronx.

— Chris Malone Méndez