Dwight Capital has provided a $23.5 million HUD 223(f) loan to refinance Station at Passaic Phase II, a 104-unit multifamily complex in Passaic, New Jersey. Developer Fadi Samaan completed the project in 2024 and used the HUD-backed financing to refinance the property.
The HUD 223(f) loan program targets stabilized, existing multifamily properties and offers competitive rates backed by federal insurance. This financing structure benefits both the developer and future investors by reducing refinancing risk through government backing.
For Samaan, the $23.5 million refinance provides capital flexibility after completing the Phase II development. The deal allows him to optimize the property's capital structure and potentially fund additional operations or expansion. HUD loans typically offer longer amortization periods, up to 35 years, which keeps debt service manageable for operators managing rental housing stock.
The Passaic location positions the property in a secondary market with solid fundamentals. Northern New Jersey's multifamily sector continues attracting institutional capital, particularly for newly completed assets in revitalized downtown areas. Station at Passaic Phase II joins a growing list of modernized rental complexes near transit corridors.
Dwight Capital specializes in HUD financing and agency debt placement. The lender's involvement signals confidence in both the Passaic market and the property's long-term performance as stabilized rental housing.
For prospective tenants, the refinance indicates property stability and continued investment in building operations. Landlords benefit from the predictable debt service structure HUD loans provide. The 104-unit configuration appeals to institutional property managers seeking mid-sized assets with manageable operating profiles.
This deal reflects broader trends in secondary markets across the Northeast. Developers completing multifamily projects are moving quickly to refinance into fixed-rate agency