Dwight Securities Management LLC raised funding to originate as much as $1 billion in construction loans, targeting the housing shortage that has driven up costs across the US.

The company in a Friday release said that the credit, backed by its current stock of properties, will fund the construction of market-rate multifamily housing over the coming year.

“This capital raise underscores the growing institutional demand for high-quality, asset-backed credit in the US multifamily sector,” Adam Sasouness, chief executive officer of affiliate Dwight Capital LLC, said in the release.