A half-empty office building off Loop 410, a retail strip with dated storefronts, or a 1980s apartment complex with down units: the deal works once the plan is done. A bridge loan pays for the time in between.
In short: LendingStreet's commercial bridge loans in San Antonio are short-term, interest-only loans for acquiring, leasing up, renovating or repositioning 9+ unit apartments, mixed-use, retail, office and flex property. The exit is a permanent commercial or DSCR loan or a sale. Terms are custom up to $5M+, and every loan uses a full valuation.
A bridge loan fits when the building's income today does not show what it will earn after your plan. Permanent loans are sized on stabilized income, so a property in transition often cannot get the loan it needs until the work is done.
Older garden apartments near the Medical Center and along Loop 410 are common value-add targets: unit interiors, roofs and amenities get updated and rents follow. Retail strips on aging corridors get facade work and new tenants. Near downtown, older buildings in Southtown and around the Broadway corridor get renovated for restaurants, shops and upstairs apartments.
Flex and small industrial space on the south side near Port San Antonio and along major highways can be upgraded and re-leased. The common thread is a clear plan and a realistic timeline for local permits.
We also see investors buying buildings from long-time local owners who kept rents low and spent little on upkeep. Those deals can carry real upside, but the seller's records may be thin, so plan on extra time to rebuild the rent roll and confirm expenses before closing.
Bridge loans look at the in-place income, the purchase price, the renovation budget and the value once the plan is complete. Payments are interest-only during the term, so your monthly cost is lower than on an amortizing loan.
We want the property to be cash-flow positive or close to it, with reserves that carry you through lease-up. The plan has to make sense on paper: a budget from a contractor, a timeline, and rents you can support with local comparables.
| Item | Bridge loan | Permanent loan |
|---|---|---|
| Purpose | Acquisition, lease-up, renovation, repositioning | Long-term hold of a stabilized property |
| Payments | Interest-only | Usually amortizing |
| Sized on | In-place income, plan and value | Stabilized NOI, DSCR and LTV |
| Valuation | Full appraisal | Full appraisal |
| Exit | Permanent loan or sale | Held to maturity or refinanced |
This example is illustrative and not a quote.
Assume an investor buys a partly vacant retail strip on a San Antonio corridor for $2,000,000 with a bridge loan of $1,400,000, 70% of the purchase price. In-place NOI is assumed at $175,000. Estimated annual interest-only payments are about $140,000, for coverage of 1.25x during the bridge term.
After the facade work and two new leases, assume stabilized NOI of $235,000 and an appraised value of $3,000,000. A permanent loan of $2,250,000 is 75% LTV with estimated annual debt service of about $184,188, a DSCR of 1.28x. That pays off the bridge loan and returns part of the renovation money.
| Stage | NOI | Loan | Est. annual debt service | Coverage |
|---|---|---|---|---|
| Bridge (interest-only) | $175,000 | $1,400,000 | $140,000 | 1.25x |
| Permanent exit | $235,000 | $2,250,000 | $184,188 | 1.28x |
Every bridge loan needs a clear way out. Most San Antonio investors exit by refinancing into a permanent commercial or DSCR loan once the property shows stabilized income in its operating statements. Others sell after the renovation.
Build in time. Leases take time to sign, tenants need time to move in, and the permanent loan will want a few months of the new income. Texas is a non-disclosure state, so the appraiser on your exit loan may have fewer public comps, which is one more reason to document your new leases well.
Property taxes can rise after a sale or a renovation, because the Bexar Appraisal District may reassess the property. Owners can protest each year, but you should budget for a higher bill. Insurance during renovation can cost more than on a finished building, and hail risk applies across the metro.
City permits and, for older buildings in historic districts, design review add time. Put those weeks in your schedule.
Commercial bridge loans take longer than residential loans because of the appraisal and the review of the plan. Send these early:
Bridge loans carry more execution risk than permanent loans, so your track record matters. We look at projects you have completed, how close you came to budget and schedule, and who is on your team: general contractor, property manager and leasing agent. A first commercial repositioning can work with a strong team and solid reserves.
Liquidity after closing is the other half. Lease-up almost always takes longer than planned, and tenant improvements and leasing commissions come due before the new rent starts. Cash set aside for those months keeps the plan, and the loan, on track.
Use the form below or call (877) 298-1001 with the property, price, in-place income, budget and exit plan. Recourse varies by program, and some loans ask principals to sign for the loan personally.
Apartments with 9 or more units, mixed-use, retail, office and flex or light industrial. The property must be non-owner-occupied investment property.
Yes. Commercial bridge loans are interest-only during the term, which keeps payments lower while you renovate or lease up.
Yes. Commercial bridge loans use a full valuation of the property, and some deals also need environmental or property condition reports.
Renovation funding is reviewed per deal. Send your budget and scope of work so we can size the loan around the plan.
A refinance into a permanent commercial or DSCR loan once income is stabilized, or a sale. We review the exit at the start, not at maturity.
Not through this commercial program. Properties with 1 to 8 units use our residential bridge and DSCR programs, including the San Antonio bridge loan page.
That is common, which is why we look at your reserves and the timeline before closing. Talk to us early if the plan slips, and build extra months into your budget from the start.
It depends on the appraisal and third-party reports, and commercial loans take longer than residential ones. A complete file at the start is the fastest route.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.