Dwight Mortgage Trust, the affiliated real estate investment trust of Dwight Capital, has closed a $183 million construction loan for a new luxury multifamily community in Gilroy. The financing, originated by managing director Keith Hoffman and originator Elliot Haft, represents the largest construction loan in Dwight Mortgage Trust’s history. The borrower is Ten South Construction, which is developing the project as a large-scale addition to the local rental housing stock.
The planned community will rise at 315 Las Animas Ave. in Gilroy on a 27-acre site. At full build-out, the development is designed to include four mid-rise apartment buildings and 33 townhome buildings, along with a dedicated clubhouse and leasing office. In total, the project will deliver 530 residential units, combining both income-restricted and market-rate housing within a single master-planned community.
A significant portion of the new homes will be reserved for income-restricted households. Of the 530 units, 243 are designated for residents earning 60% and 80% of Area Median Income, providing a meaningful infusion of attainable housing into the market. The remaining 287 townhome units will be leased at market-rate levels, giving the project a mixed-income profile that spans a range of renter segments.
Construction is expected to run over a multi-year period, with completion currently projected for 2029. Once delivered, the property is anticipated to introduce a substantial number of new apartments and townhomes to Gilroy, expanding the area’s modern rental inventory and adding both density and variety to the local housing options.
Dwight Mortgage Trust characterized the location as one of the most supply-constrained submarkets within the San Jose-Sunnyvale-Santa Clara metropolitan statistical area. Despite growing housing demand and sustained rent growth in the region, the submarket has seen limited multifamily development activity over the past two decades. Against that backdrop, the 530-unit project stands out as a notable pipeline addition for the area.
The new financing underscores Dwight Mortgage Trust’s role as an active construction lender in the multifamily sector and reflects the firm’s willingness to commit substantial capital to large-scale residential projects. For Ten South Construction, the loan secures funding for a long-term development that combines scale, income-restricted housing commitments and market-rate townhomes within a single community framework.
