Dwight Capital closed a $66 million HUD 221(d)(4) construction loan for Martin Inderman Development's luxury multifamily project in Abilene, Texas. The financing covers The Lariat at Abilene, a 312-unit development in central Texas.
HUD 221(d)(4) loans offer favorable terms for multifamily construction, including longer amortization periods and lower interest rates than conventional financing. These loans target workforce housing and mixed-income properties, making them attractive for developers pursuing moderate-rent strategies alongside luxury units.
For Inderman Development, the HUD debt provides lower-cost capital during construction. The 312-unit scale positions the project as a significant addition to Abilene's multifamily stock, which has seen limited new supply in recent years. The luxury positioning suggests rents will target upper-income renters, though HUD requirements may impose affordability restrictions on a percentage of units.
Abilene, home to Abilene Christian University and Hardin-Simmons University, has experienced steady population growth. Limited Class A multifamily inventory creates demand for modern, amenity-rich apartments. The Lariat project likely captures both young professionals and university-adjacent renters seeking contemporary housing.
Dwight Capital specializes in multifamily construction financing and has built a reputation closing HUD loans for large-scale projects. The lender's presence in this deal reflects Abilene's emergence as a secondary market where HUD programs remain competitive versus conventional lending.
For current Abilene renters, The Lariat adds supply that may ease rent pressure if absorption occurs smoothly. Existing luxury properties face new competition once the project stabilizes. Investors in Abilene multifamily see validation that institutional lenders view the market as investable, signaling confidence in long-term