At a glance
- David Scheer and Andrew Tichy originated the loan for Dwight.
- The nonrecourse, HUD-backed loan carries a 24-month interest-only period before converting to a fully amortizing 40-year term, and Dwight says that schedule gives the borrower predictable debt service well beyond completion.
- The 279 units are one- and two-bedroom apartments across the four buildings.
Dwight Capital has closed a $47 million HUD 221(d)(4) construction loan for Hunington Properties' 279-unit The Vic at Sunterra in Katy, Texas, Commercial Observer reported, and Hunington Residential is slated to finish the four three-story buildings in fall 2028 on a 10-acre site at 245 Bartlett Road, 35 miles west of Downtown Houston and inside the 1,300-acre Sunterra master-planned community. David Scheer and Andrew Tichy originated the loan for Dwight.
What the 40-year term removes from the 2028 calendar
The nonrecourse, HUD-backed loan carries a 24-month interest-only period before converting to a fully amortizing 40-year term, and Dwight says that schedule gives the borrower predictable debt service well beyond completion. That leaves the sponsor without the refinancing event a shorter construction loan would put in front of it in 2028: no takeout to source at stabilization and no dependence on a bank or debt fund producing a term sheet. Stretching a maturity past delivery has precedent—in September this publication covered a five-year PNC loan against a 2028 delivery—but a 40-year amortization inside the construction instrument runs far longer than a bank term.
The property sits in Katy Independent School District with Cross Elementary next door, and Scheer, a managing director at Dwight, described its standing as the sole multifamily community inside Sunterra as a key demand driver along with resident access to the community's amenities: a 2.7-acre lagoon with a sand beach, pickleball courts, a swimming pool, a fitness center and a fitness trail. The 279 units are one- and two-bedroom apartments across the four buildings.
The maturity wall is handled at origination rather than at maturity. Maturing commercial real estate debt, as this publication has argued, has been clearing less through distress sales than through structured extensions and patient capital extending rather than foreclosing. The wrinkle is who supplies the patience: not a rescue fund arriving late in the stack, but a federal program whose permanent debt is embedded in the construction loan from day one, which changes what the borrower is competing against when it shops a deal.
For a 221(d)(4) execution, the deciding number is whether Katy rents reach the payment schedule, and the reported terms don't include the interest rate, the loan-to-cost, or a coverage test a reader could run. Fall 2028 is when the rent roll starts answering.
Reported by the Real estate debt desk from Commercial Observer. Published . Corrections