Dwight Capital Secures $56M HUD Financing for North Texas Multifamily Development

Dwight Capital has arranged a substantial $56 million construction loan backed by the U.S. Department of Housing and Urban Development for a new multifamily project in the Dallas metropolitan area. The financing will support the development of StoneHawk Rosehill, a 269-unit apartment community slated for Garland, Texas—a suburban market that continues to attract significant investor interest amid the region's sustained population growth.

The HUD 221(d)(4) loan program, known for its favorable terms including long-term fixed rates and high loan-to-cost ratios, has become an increasingly attractive option for developers seeking stability in an uncertain interest rate environment. According to Commercial Observer, the deal team from Dwight Capital included Brandon Baksh and Brian Yee, who facilitated the transaction for StoneHawk Capital Partners.

Key Details

• Loan Amount: $56 million
• Lender: Dwight Capital
• Loan Program: HUD 221(d)(4) construction-to-permanent financing
• Borrower: StoneHawk Capital Partners
• Project Name: StoneHawk Rosehill
• Unit Count: 269 apartments
• Location: Garland, Texas (Dallas-Fort Worth metroplex)

Market Impact

This transaction underscores several important trends shaping the current commercial real estate landscape. First, the Dallas-Fort Worth metroplex continues to demonstrate remarkable resilience as a top-tier multifamily market. Suburban submarkets like Garland have emerged as compelling alternatives to urban core developments, offering developers lower land costs while still capturing the region's robust job and population growth.

The choice of HUD financing is particularly noteworthy. As traditional construction lenders have pulled back amid tighter credit conditions and regulatory uncertainty, government-backed programs have filled a critical gap. The 221(d)(4) program offers developers the security of fixed-rate, non-recourse financing with loan terms extending up to 40 years—a significant advantage in today's volatile rate environment.

For CRE professionals, this deal signals that capital remains available for well-positioned multifamily projects in growth markets. The Dallas area's combination of corporate relocations, diverse employment base, and relative affordability continues to drive rental demand. Developers who can navigate the often-lengthy HUD approval process are finding competitive financing that may not be available through conventional channels.

Additionally, the involvement of a specialist lender like Dwight Capital highlights the importance of partnering with institutions that possess deep expertise in government-backed lending programs. As the market continues to recalibrate, expect to see more developers exploring HUD and agency financing alternatives to de-risk their capital stacks and secure long-term project viability.