PASSYCAPITAL

Texas · Mixed-Use

Texas mixed-use financing.

Bridge, construction, and renovation financing for mixed-use properties across Dallas, Houston, Austin, and San Antonio. Urban infill (Deep Ellum, the Heights, East Austin, Pearl District), adaptive reuse, and ground-up development.

By David Hodara ·

8+

Active urban corridors

$1M-$50M+

Loan range

65%+

Residential income share preferred

2-4 weeks

Typical close

Texas mixed-use market context

Texas mixed-use is anchored by Austin (East Austin, downtown, the Domain), Dallas (Deep Ellum, Bishop Arts, Knox-Henderson), Houston (the Heights, Montrose, EaDo), and San Antonio (Pearl District). These corridors have seen sustained density growth as Texas urban cores have densified.

Most Texas mixed-use is underwritten as multifamily with a commercial component when residential income exceeds 65-70% of total. Above the threshold, lenders use mixed-use commercial pricing. Ground-floor retail tenant credit (national vs local) and lease term significantly affect underwriting.

Top Texas markets we actively fund

We work mixed-use deals across Texas, with deepest lender relationships in the metros below.

Texas mixed-use FAQ

What's the residential-vs-commercial threshold Texas lenders use for mixed-use?

Most underwrite as multifamily when residential income exceeds 65-70% of total. Below that, mixed-use commercial pricing applies (lower LTV, higher rate). The threshold varies by lender from 60% to 75%.

Are adaptive reuse projects financeable in Texas?

Yes, especially in Austin, Dallas, and Houston where historic and industrial conversion is common. Construction lenders want a clear scope of structural work, historic preservation compliance plans if applicable, and a sponsor with adaptive reuse track record. Phase I environmental is often a deal-mover on industrial conversions.

What's typical leverage on Texas mixed-use bridge?

70-75% LTV on stabilized mixed-use, 65-70% on value-add or transitional. Construction tops at 80% LTC with pre-leasing on the commercial portion and sponsor experience.

How does Texas property tax volatility affect mixed-use underwriting?

Mixed-use tax burden depends on use mix and county valuation methodology. Lenders typically use stressed tax assumptions and expect operators to budget annual reappraisal increases. New construction triggers reassessment at fair market value at completion, often a 30-50% step-up vs. prior land valuation.

Got a Texas mixed-use deal? Send it over.

Term sheet inside 48 hours, or a fast no so you can move on. Business-purpose CRE financing only.