Dwight Capital has closed a $47 million construction loan for Hunington Properties' planned The Vic at Sunterra apartment development in Katy, Texas, according to Commercial Observer.
The financing will support construction of the 279-unit multifamily property in Sunterra, a 1,300-acre master-planned community in suburban Houston. The project adds rental housing to one of the area's large-scale residential development sites.
The loan was structured through the U.S. Department of Housing and Urban Development's 221(d)(4) program, which provides federally insured financing for the construction or substantial rehabilitation of multifamily rental properties.
For developers, HUD construction financing can provide a long-term capital option for qualifying rental projects, although the program carries detailed underwriting, design and compliance requirements. The transaction positions Hunington to advance The Vic at Sunterra as Katy continues to attract residential development activity.
