- Dwight Capital closed a $47M HUD 221(d)(4) construction loan for Hunington Properties’ 279-unit The Vic at Sunterra in Katy, Texas, with completion slated for fall 2028.
- The nonrecourse loan carries a 24-month interest-only period followed by a fully amortizing 40-year term, giving the borrower predictable debt service well past construction.
- The structure gives a suburban Houston developer long-term, predictable financing for a new rental community inside a master-planned development.
Hunington Properties secured a $47M HUD construction loan for a new multifamily project in suburban Houston, according to Commercial Observer.
Dwight Capital closed the HUD 221(d)(4) loan for The Vic at Sunterra, a planned 279-unit apartment community in Katy, Texas.
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The Project
Hunington Residential, the developer’s multifamily arm, plans to complete the project in fall 2028.
The Vic will sit on 10 acres at 245 Bartlett Road, about 35 miles west of downtown Houston. The property will include one- and two-bedroom units across four three-story buildings.
The project will join the 1,300-acre Sunterra master-planned community. It will also be the community’s only multifamily property.
Amenities Aim to Drive Demand
The community’s location and amenities should support leasing demand.
Dwight’s David Scheer said The Vic’s status as Sunterra’s only multifamily property will help drive demand. Residents will also have access to the community’s 2.7-acre lagoon and sand beach.
Other amenities will include pickleball courts, a pool, a fitness center and a fitness trail.
The property also sits within the Katy Independent School District. Cross Elementary is located next door.
Long-Term Financing Structure
The $47M HUD construction loan is nonrecourse. It also includes a 24-month interest-only period.
After that period, the loan will convert to a fully amortizing 40-year term. David Scheer and Andrew Tichy originated the loan for Dwight Capital.
HUD 221(d)(4) financing combines construction and permanent financing in one structure. As a result, the long amortization can give developers more predictable debt costs throughout the project’s life.
Why It Matters
The financing comes as developers continue to navigate changing apartment market conditions.
For broader context, CRE Daily recently reported that apartment concessions are easing across major U.S. markets.
Meanwhile, lender competition is reshaping other debt options for commercial real estate borrowers.
What’s Next
Construction is expected to continue through fall 2028.
Hunington did not immediately respond to Commercial Observer’s request for comment. Therefore, details on rents and the project’s leasing timeline remain unclear as construction progresses.
