Dwight Capital Secures $47 Million HUD Loan for Katy, Texas Multifamily Development

Dwight Capital has provided $47 million in construction financing to Hunington Properties for a new multifamily development in Katy, Texas. The loan, a U.S. Department of Housing and Urban Development (HUD) 221(d)(4) construction loan, will fund The Vic at Sunterra, a 279-unit apartment community.

Located within the 1,300-acre Sunterra master-planned community, the project will feature one- and two-bedroom units across four three-story buildings on a 10-acre site at 245 Bartlett Road. Hunington Residential, the multifamily arm of Hunington Properties, anticipates completing the development by fall 2028.

This nonrecourse HUD-backed financing offers a 24-month interest-only period, followed by a 40-year fully amortizing term, providing a stable debt service schedule. David Scheer, a managing director at Dwight, highlighted the property's location as the sole multifamily community within Sunterra, granting residents exclusive access to amenities like a 2.7-acre lagoon, pickleball courts, and a fitness center. The proximity to the highly-rated Katy Independent School District, with Cross Elementary nearby, also enhances its appeal. For developers and lenders, this transaction underscores the continued viability of HUD financing for large-scale suburban multifamily projects in growth markets.