Dallas commercial property is a market of very different submarkets: older garden apartments in Lake Highlands and Vickery Meadow, retail and restaurant strips along Lower Greenville and in Bishop Arts, older flex buildings along the Stemmons corridor and suburban office near the LBJ Freeway. Each one is underwritten on the same core numbers, and in Dallas the tax bill and the insurance quote move those numbers more than most investors expect.
In short: LendingStreet makes business-purpose commercial real estate loans to investors buying or refinancing income property in Dallas, including 9+ unit multifamily, mixed-use, retail, office, flex and light industrial, and self-storage. Loans run up to $5M+ on custom terms, with up to 75% LTV on acquisitions, and are sized on the property's net operating income (NOI), debt service coverage ratio (DSCR) and LTV. The property must be cash-flow positive, and your experience, liquidity, rent roll and leases all shape the final terms.
Commercial, for our purposes, means income property beyond the residential range: apartment buildings with 9 or more units, mixed-use buildings, retail centers and strips, office buildings, flex and light industrial space, self-storage and similar property. If you are buying a duplex, fourplex or a 5-8 unit building, that is a residential loan, and our 5-8 unit DSCR page or the Dallas DSCR page is the better place to start.
Our investor loans are business-purpose loans on non-owner-occupied property. That means the building has to earn its income from third-party tenants. We do not finance a building that your own operating business will occupy.
Typical Dallas requests include acquisitions of stabilized apartment communities, refinances of retail strips that have been leased up, bridge loans for buildings that need renovation, and small-balance loans on neighborhood retail, office condos and flex bays.
| Property type | Dallas examples | What drives the loan |
|---|---|---|
| 9+ unit multifamily | Lake Highlands, Vickery Meadow, Old East Dallas, Oak Cliff | Rent roll, trailing operating statements, unit condition |
| Mixed-use | Bishop Arts, Deep Ellum, Lower Greenville, Knox-Henderson | Blend of commercial and residential income, lease terms |
| Retail | Neighborhood strips along major arterials across the city | Tenant mix, lease expirations, reimbursements |
| Office | Uptown, LBJ Freeway, North Dallas | Occupancy, lease length, leasing costs |
| Flex and light industrial | Stemmons corridor, Northwest Dallas, Design District | Tenant credit, ceiling height, access, lease terms |
| Self-storage | Suburban and edge-of-city sites across the metro | Occupancy history, rate history, operating costs |
Commercial loans are sized on the building, not on your personal income. We start with the property's gross potential rent, subtract vacancy and credit loss, subtract operating expenses, and arrive at net operating income. NOI divided by the estimated annual debt service is the DSCR. The loan amount is the lower of what the DSCR supports and what the LTV limit allows.
Up to 75% LTV is available on acquisitions, but max leverage varies by program, property type and balance. A stabilized apartment building with a long operating history may size closer to the top of the range than a partially vacant office building. Terms are set per deal.
Texas has no state income tax, and local taxing units make up for it with property taxes. In Dallas County, the Dallas Central Appraisal District sets the appraised value, and the county, city, school district, community college district and hospital district all levy against it. Properties in Collin, Denton or Tarrant County fall under their own appraisal districts. Confirm the full rate with the appraisal district for the exact parcel.
Insurance is the other big line. North Texas is hail country, and wind and hail deductibles on commercial policies have grown. Buildings near the Trinity River or the creeks that feed it may also need flood coverage. We underwrite on a current quote, not on the seller's old policy.
This example is illustrative and not a quote. An investor buys a multi-tenant flex building in Northwest Dallas for $2,400,000. The rent roll shows $275,000 a year in gross potential rent from five bays. The underwriting assumes 8% vacancy and credit loss, leaving effective gross income of $253,000.
Operating expenses are estimated at $73,120: $38,000 in property taxes budgeted on the purchase price, $9,500 for insurance, $6,000 in unreimbursed common-area costs, $10,120 for management, $5,500 for repairs and $4,000 in reserves. NOI is $179,880.
At 70% LTV the loan is $1,680,000. Estimated annual debt service is about $142,487, so DSCR is about 1.26x. The building is cash-flow positive with room to absorb a vacant bay.
| Item | Amount |
|---|---|
| Purchase price | $2,400,000 |
| Gross potential rent | $275,000 |
| Vacancy and credit loss (8%) | $22,000 |
| Effective gross income | $253,000 |
| Operating expenses | $73,120 |
| Net operating income | $179,880 |
| Loan amount (70% LTV) | $1,680,000 |
| Estimated annual debt service | $142,487 |
| DSCR | 1.26x |
Texas is a non-disclosure state, so sale prices are not part of the public record. Appraisers working in Dallas rely on their own sales databases, interviews with buyers and sellers, and income analysis. That makes the income approach central on commercial loans.
The practical result: a clean rent roll, signed leases and trailing operating statements carry a lot of weight. If the building's value depends on rents that are not in place yet, expect the valuation and the loan to reflect in-place income.
Most Dallas commercial requests fall into one of five programs. Each has its own page with a Dallas example.
Commercial loans take longer than residential loans, and it is better to plan for that than be surprised by it. A full commercial valuation, review of the rent roll and leases, an environmental review and a property-condition review are common. Older Dallas buildings, especially former auto, dry-cleaning or light industrial sites, can need extra environmental work.
The fastest files are the complete ones. Order your insurance quote early, gather estoppels or tenant contact details for commercial tenants, and keep your operating statements in a format an underwriter can read.
Send these with your request and the financing team can size the loan quickly.
Send the address, property type, price or value, rent roll and the loan amount you want. We will run NOI on realistic Dallas taxes and insurance, test DSCR at a few loan amounts and tell you which program fits. Use the form below to get a quote or call (877) 298-1001.
Apartment buildings with 9 or more units, mixed-use, retail, office, flex and light industrial, self-storage and similar income property. Buildings with 1 to 8 units are financed under our residential DSCR programs.
Loans run up to $5M+ on custom terms. Up to 75% LTV is available on acquisitions, and the final amount is the lower of what the LTV and the DSCR on in-place NOI support.
It has to be cash-flow positive. Stabilized income is required for permanent and cash-out loans. If the building is mostly vacant or needs work, a commercial bridge loan is usually the better fit.
Yes. Taxes are often the largest expense, and we budget them on your purchase price using the full combined rate. Higher taxes mean lower NOI, which lowers the loan the DSCR can support.
Yes. LLC and other entity borrowers are standard. Recourse varies by program, and some programs ask the principals to sign for the loan personally.
Longer than a residential loan. Valuation, rent roll and lease review, environmental and property-condition reviews are common. A complete file at the start is the biggest factor you control.
No. Our investor loans are business-purpose loans on non-owner-occupied property leased to third-party tenants.
Yes. We review investor commercial property across the metro, including Richardson, Garland, Irving, Plano and the rest of Dallas, Collin and Denton counties.
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