Dwight Capital closes $47 million HUD loan for Hunington Properties' Katy apartments

Hunington Properties closed a $47 million HUD 221(d)(4) loan to start The Vic at Sunterra, a 279-unit apartment community in Katy, Texas. Dwight Capital's David Scheer and Andrew Tichy originated the non-recourse debt, which PWD reported on Oct. 1 and Connect CRE detailed with the terms in full; spread over the 279 apartments, that amounts to roughly $168,000 of debt per unit.

Where this one separates from the bridge business that has been financing apartment lease-ups is the structure: interest-only for 24 months, then a fully amortizing 40-year schedule, all inside the same closing, so construction and the first years of occupancy sit on interest payments alone, and the permanent loan is signed at the same table as the construction loan. A bridge borrower takes the sequence in two steps — short money now and a takeout to be arranged later — and pays for the flexibility. Which structure a sponsor can use is less a question of spread than whether the calendar can absorb a federal approval process alongside the construction schedule.

Dwight's HUD desk is running both speeds. The firm also closed a $32 million 223(f) refinancing on Scannapieco's Philadelphia apartments, sized to fund a replacement reserve and, per Dwight, to give the sponsor access to equity built since the 110-unit building opened in 2024, and it has put $70 million of non-recourse, interest-only paper on a renovated Newark tower. Set against the $130 million Phoenix construction loan Dwight wrote before a takeout existed, the FHA closings read as the other answer to the same gap between construction cost and income: permanent debt for assets that can wait, bridge money for the ones that cannot.

The Katy site explains the programming: just over 10 acres inside the Sunterra master plan, where the 3.5-acre Sol Club amenity complex and a 2.7-acre lagoon are already built, so the leasing argument does not rest on amenities still to be delivered. What the 24-month interest-only window has to absorb is a 279-unit lease-up; what the borrower holds on the other side is a loan that pays down over 40 years instead of coming due.