Dwight Capital has provided a $60 million HUD 223(f) refinancing loan for Birchwood Grove, a newly developed townhome community in Davenport, Iowa. The transaction recapitalizes a 194-unit rental property and utilizes the HUD 223(f) program structure, which is commonly used for stabilized multifamily assets.
Birchwood Grove consists of 56 two- and three-story townhouse buildings along with a separate community building. That standalone building contains a clubhouse and leasing office, as well as 4,800 square feet of ground-floor commercial space. The townhome community is located at 5101 Ravenwood Lane, placing residents near walkable amenities, shopping, and restaurants, while also offering convenient access to Interstate 74 and Interstate 80.
Loan proceeds are being used to retire existing debt on the property and to pay associated closing costs. In addition, a portion of the proceeds will capitalize a replacement reserve intended to support future capital improvements at the community. The financing structure also enables the borrower to draw on equity created since the original construction financing, effectively monetizing value that has accrued during the development and stabilization period.
The HUD 223(f) refinance was originated by Dwight Capital professionals Josh Hoffman and Jonathan Pomper. They completed the transaction on behalf of borrower Kevin Dolan of Dolan Homes LLC. The deal reflects continued lender engagement with newly built rental townhome product, particularly properties that integrate residential space with a modest amount of commercial square footage in a single community setting.
By replacing the prior construction loan with long-term HUD-insured financing, the borrower has locked in a permanent capital structure while setting aside dedicated funds for ongoing physical upkeep. The combination of townhome-style units, on-site leasing and clubhouse facilities, and proximity to major transportation corridors positions Birchwood Grove as a notable multifamily community within the Davenport market.
