A storefront on South Alamo with apartments upstairs earns two kinds of rent. Lenders treat them differently, and the split between them decides how much your San Antonio mixed-use building can borrow.
In short: LendingStreet finances non-owner-occupied mixed-use buildings in San Antonio for purchase, refinance and bridge, underwritten on blended commercial and residential NOI. Loans carry custom terms up to $5M+ and up to 75% LTV on acquisitions, with leverage set by the commercial share, lease terms and vacancy assumptions. Entity borrowers are standard.
The older mixed-use stock clusters close to downtown. Southtown and the South Alamo and South St. Mary's corridors have two-story buildings with shops or restaurants below and apartments above. Near the Pearl and along Broadway, newer projects pair ground-floor retail with apartments. Pockets along Fredericksburg Road and the St. Mary's Strip have small storefront buildings with upstairs space.
Farther out, live-work buildings and newer retail with offices above show up in Stone Oak and along the Loop 1604 corridor. Older buildings near the core can carry historic designations, which shape what you can change and what renovations cost.
We underwrite the commercial and residential income separately, then combine them. Apartments upstairs usually get a lower vacancy assumption than ground-floor retail, because a vacant storefront can sit longer and often needs build-out money to lease. The longer and stronger the commercial leases, the more weight that income carries.
The commercial share matters. A building where most income comes from apartments sizes more like a residential-heavy property. A building that relies on one restaurant tenant for half its rent gets more conservative assumptions.
| Factor | Residential units above | Ground-floor commercial |
|---|---|---|
| Typical lease | 12-month apartment leases | Multi-year retail or office leases |
| Vacancy assumption | Usually lower | Usually higher, with re-leasing time |
| What we review | Rent roll and unit mix | Lease terms, renewals, tenant type |
| Main risk | Turnover and repairs | One tenant leaving takes a large share of income |
San Antonio's Unified Development Code sets the zoning for each parcel, and some infill sites near the core use the Infill Development Zone (IDZ), which can relax certain requirements for redevelopment. Buildings in historic districts such as King William need review by the city's Office of Historic Preservation for exterior changes.
Before you buy, confirm that the current uses are allowed under the parcel's zoning and that any change you plan, like converting upstairs office to apartments, is permitted. A nonconforming use can limit what an appraiser will credit. If you are unsure, the city's Development Services Department can confirm the zoning on a parcel before you go under contract.
Pick the structure based on where the building is today, not where you hope it will be.
This example is illustrative and not a quote.
Assume a two-story Southtown-area building priced at $1,600,000 with three retail suites at $2,400 a month each and six apartments at $1,400 a month each. We assume 10% vacancy on the retail and 5% on the apartments.
That gives effective income of $173,520. After assumed operating costs of $56,520 for taxes, insurance, repairs, utilities and management, NOI is $117,000. A loan of $1,120,000 is 70% LTV, with estimated annual debt service of about $91,684, for a DSCR of 1.28x.
| Line | Assumed figure |
|---|---|
| Retail gross rent | $86,400 |
| Apartment gross rent | $100,800 |
| Effective income after vacancy | $173,520 |
| Operating costs | $56,520 |
| NOI | $117,000 |
| Loan at 70% LTV | $1,120,000 |
| Estimated annual debt service | $91,684 |
| DSCR | 1.28x |
Mixed-use buildings near downtown are often decades old, so insurance carriers look closely at roofs, wiring and plumbing. Hail is a real risk across Bexar County. Restaurant tenants raise the premium and the fire-safety questions. Get a quote early.
Property taxes come from the Bexar Appraisal District value and the combined local rates for that parcel. A recent sale can push the appraised value up the next year, so budget for that and remember you can protest the value each year.
Mixed-use deals take longer than residential loans because of the appraisal, lease review and often environmental and property condition reports. Send these with your request:
The commercial leases are where most mixed-use files win or lose leverage. A storefront lease with several years left, renewal options and a tenant that has operated in the space for a while gets far more credit than a new lease with a first-time business. Leases that pass taxes, insurance and maintenance through to the tenant also help, because they protect NOI when the Bexar Appraisal District raises the value.
On the residential side, steady occupancy and rents in line with nearby apartments matter most. If the upstairs units are rented well below market, that is upside for a later refinance, but the loan today is sized on the rents you collect.
Use the form below or call (877) 298-1001 with the address, purchase price or estimated value, and a split of commercial and residential rent. We will tell you which structure fits and what the blended NOI is likely to support.
It depends on the deal, but small buildings with a storefront are often handled through our commercial program because the commercial lease drives the risk. Tell us the unit count and rent split and we will tell you which path fits.
A vacant storefront often takes longer to lease than an apartment and may need build-out money. Lenders assume more downtime on commercial space to protect the loan.
Yes, often through a commercial bridge loan sized on in-place income and your plan to lease the space. The exit is a permanent loan or sale once the building is stabilized.
They can affect renovation cost, timing and what changes are allowed. We want to know about any designation early so the budget and appraisal reflect it.
Up to 75% LTV on acquisitions. The final number depends on the blended NOI, DSCR, the commercial share and the strength of the leases.
No. These are business-purpose loans on non-owner-occupied investment property, so every unit must be leased or available for lease to tenants.
No. We finance property leased to outside tenants. Owner-user financing is not something we offer.
Longer than a residential loan, because the appraisal, lease review and third-party reports take time. A complete rent roll and lease package at the start shortens it.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
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