Plenty of Dallas commercial property trades before it is ready for a permanent loan: a retail strip with empty bays, an apartment building with dated units and soft collections, a flex building that just lost its largest tenant. A bridge loan buys the time to fix that, and the whole plan rests on the exit.
In short: LendingStreet makes short-term, interest-only commercial bridge loans to Dallas investors for acquisitions, lease-up, renovation or repositioning of 9+ unit multifamily, mixed-use, retail, office and flex property. Loans run up to $5M+ on custom terms, with up to 75% LTV on acquisitions, and every bridge is underwritten around a clear exit to a permanent commercial or DSCR loan, or a sale. A full commercial valuation is required, and your experience, liquidity and business plan carry real weight.
A bridge loan is for property whose income or condition is about to change. The permanent lenders want stabilized income; the bridge loan carries the property while you create it.
Common Dallas situations include buying a partly vacant retail strip on a major arterial and re-leasing it, buying an older apartment building in Lake Highlands or Old East Dallas and renovating units, taking over a flex building along the Stemmons corridor after a tenant moves out, or closing quickly on a building where the seller will not wait for a long permanent-loan process.
Commercial bridge loans are short-term and interest-only, so the monthly payment covers interest and the full balance is due at maturity. That keeps carrying costs lower during the work, but it means you need a plan to pay the loan off.
We size bridge loans on the as-is value, the in-place income and the business plan. The property should be cash-flow positive. Leverage depends on the property type, the balance, how much work is planned and how much experience you have with similar projects.
| Feature | Commercial bridge | Permanent commercial loan |
|---|---|---|
| Purpose | Acquire, renovate, lease up, reposition | Hold a stabilized property |
| Payments | Interest-only | Amortizing in most cases |
| Term | Short-term | Longer-term |
| Sized on | As-is value, in-place income, business plan | Stabilized NOI, DSCR and LTV |
| Exit | Permanent loan or sale | Not applicable |
This example is illustrative and not a quote. An investor buys a neighborhood retail strip for $1,600,000. It is about 70% leased, with in-place NOI of $128,000. The plan is to spend $300,000 on facade work, parking lot repairs and improvements for two vacant bays, then lease them.
A bridge loan at 65% of the purchase price is $1,040,000. Estimated annual interest-only payments are about $104,000, so in-place coverage is about 1.23x. The investor brings $860,000 for the down payment and renovation.
After the bays are leased, the assumed stabilized NOI is $185,000 and the assumed stabilized value is $2,600,000. A permanent loan at 65% LTV would be $1,690,000, with estimated annual debt service of about $143,335 and DSCR of about 1.29x. That loan pays off the bridge with about $650,000 left before closing costs. Every stabilized figure here is an assumption, and the real exit depends on the leases you sign.
| Item | Bridge (in place) | Permanent exit (stabilized) |
|---|---|---|
| Net operating income | $128,000 | $185,000 |
| Value used | $1,600,000 purchase | $2,600,000 assumed |
| Loan amount | $1,040,000 | $1,690,000 |
| Leverage | 65% of purchase | 65% LTV |
| Estimated annual payments | $104,000 interest-only | $143,335 amortizing |
| Coverage | 1.23x | 1.29x |
The exit is the most important part of a bridge application. A refinance exit needs the property to reach stabilized, cash-flow-positive income that will size a permanent loan large enough to pay off the bridge. A sale exit needs a realistic resale value in a market where sale prices are not public record.
Test your exit on conservative rents and realistic Dallas expenses. If the stabilized NOI only works with every bay leased at top-of-market rent, the plan is thin.
Property taxes can jump after a sale and after renovation, because the Dallas Central Appraisal District can raise the appraised value as the property improves. Texas is a non-disclosure state, so the district may not know your price, but your budget should assume it will catch up. Owners can protest each year.
Permits and zoning matter on renovations. Work on commercial space in Dallas needs city permits and new tenants need certificates of occupancy, which can take time. Changing a use, such as converting retail to a restaurant, can trigger parking or other code requirements. Hail season and rising insurance costs also belong in the carry budget.
Bridge loans lean on the sponsor as much as the property. We look at your track record with similar property, your liquidity relative to the renovation and carry, and how realistic the budget and timeline are.
A commercial bridge loan can move faster than a permanent loan, but it is still a commercial loan. A full commercial valuation is required, and environmental and property-condition reviews are common. Older strip centers and flex buildings can have past dry-cleaner or auto uses that need extra environmental review. Send complete documents at the start to keep the timeline tight.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, rent roll, budget and your exit plan, and we will size the bridge, test the exit at conservative assumptions and tell you what the permanent loan could look like. Use the form below to get a quote or call (877) 298-1001.
A short-term, interest-only loan used to buy, renovate, lease up or reposition commercial property before refinancing into a permanent loan or selling.
9+ unit multifamily, mixed-use, retail, office and flex or light industrial property owned as an investment and leased to third parties.
Yes. Commercial bridge loans require a full commercial valuation, and environmental and property-condition reviews are common.
Up to $5M+ on custom terms, with up to 75% LTV on acquisitions. Leverage depends on property type, balance, the scope of the work and your experience.
A refinance into a permanent commercial or DSCR loan once the property is stabilized, or a sale. The exit has to be realistic on conservative rents and full Texas property taxes.
It should be cash-flow positive, with in-place income that covers operating costs. Ground-up construction is a separate program.
Taxes can rise after a sale and again after renovation, which raises carry costs and lowers the stabilized NOI that sizes your exit loan. Budget for the full combined rate.
Experience helps a great deal. A sponsor who has renovated or leased similar property, with liquidity to cover the work and the carry, will usually see better leverage than a first-time commercial buyer.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
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