Most San Antonio commercial deals are not towers. They are a six-suite strip on a neighborhood corridor, a flex building on the south side or a self-storage facility past Loop 1604, and they need a loan built for that size.
In short: LendingStreet's small-balance commercial program finances San Antonio investment property with loans of roughly $500K to $5M, including small retail strips, office, flex and light industrial, self-storage and mixed-use buildings. Loans are sized on NOI, DSCR and value, with custom terms and up to 75% LTV on acquisitions. The property must be non-owner-occupied and cash-flow positive.
Small-balance commercial covers loans from about $500K to $5M. That range fits most of the commercial property individual investors buy in San Antonio: buildings with a handful of tenants, where the owner or a small management company runs the property.
The underwriting is the same three tests as larger loans, NOI, DSCR and LTV, but we pay close attention to how much of the income depends on one or two tenants.
Small buildings also tend to have thinner records. A seller who managed the property personally may have simple spreadsheets rather than formal statements. That is workable, but bank statements showing rent deposits and copies of tax and insurance bills help us confirm the numbers.
Our investor loans are business-purpose loans on non-owner-occupied property, so the building must be leased to outside tenants.
Each property type has its own risks, and the way we read the income changes with it.
| Property type | Typical San Antonio setting | Key underwriting question |
|---|---|---|
| Small retail strip | Neighborhood corridors across the north, west and northeast sides | Lease terms and how many tenants carry the rent |
| Small office | Loop 410 and Medical Center area, leased to outside tenants | Lease rollover and re-leasing cost |
| Flex or light industrial | South side near Port San Antonio and along major highways | Tenant credit, ceiling heights, truck access |
| Self-storage | Growth areas along Loop 1604 and the outer suburbs | Occupancy history and local competition |
| Small mixed-use | Southtown, St. Mary's Strip, near downtown | Blend of commercial and residential income |
On a 40-tenant building, one tenant leaving is a small dent. On a four-suite strip, it can take a quarter or more of the income. That is why lease length, renewal history and the type of tenant matter more on small deals.
We look for leases that extend past the first years of the loan, tenants that have been in place for a while, and a rent level that would let you re-lease a suite without a deep cut. Spaces leased month to month get less credit.
We also look at who pays what. Many small retail and flex leases pass some or all of the taxes, insurance and maintenance through to tenants. Those reimbursements count as income, but only if the leases support them and the tenants have actually been paying.
Self-storage is underwritten on trailing occupancy and collections, not on unit count alone. We want to see an operating history, management in place and a sense of the new supply nearby, since storage has been built across the growing edges of the metro.
Flex and light industrial deals depend on the tenants and the building. Truck access, loading, power and ceiling height affect how easily space re-leases. Tenants running businesses in the space are fine; the building just has to be leased to someone other than you.
This example is illustrative and not a quote.
Assume a fully leased four-tenant flex building on the south side priced at $1,100,000, with assumed NOI of $82,000 after vacancy, taxes, insurance, repairs and management.
A loan of $770,000 is 70% LTV. Estimated annual debt service is about $63,033, for a DSCR of 1.30x. If one tenant paying a quarter of the rent left, NOI would drop sharply, which is why lease dates on each suite get close review.
| Item | Assumed figure |
|---|---|
| Purchase price | $1,100,000 |
| NOI | $82,000 |
| Loan amount | $770,000 |
| LTV | 70% |
| Estimated annual debt service | $63,033 |
| DSCR | 1.30x |
Texas has no state income tax, so property tax takes a large share of income on small commercial buildings. Confirm the appraised value and combined rates with the Bexar Appraisal District, and remember owners can protest every year. Hail and wind drive insurance costs across the metro, and metal flex buildings and older roofs get extra attention.
Texas is a non-disclosure state, so sale prices are not public record. On small buildings with few nearby sales, the appraisal can take longer, and the appraiser may lean more on income.
Small-balance loans still take longer than residential loans. Expect a full appraisal, a lease review, and often environmental and property condition reports. Have these ready:
The difference between a small-balance loan and a larger commercial loan is mostly about the property and the borrower, not the rules. Small buildings tend to have fewer tenants, local rather than national leases, and owners who manage the property themselves or with a small firm. Underwriting reflects that by looking closely at each lease and at your own experience running the building.
Larger deals often have professional management, more tenants and longer operating histories. Both are sized on NOI, DSCR and LTV, both need a full appraisal, and both carry custom terms. If your deal sits near the top of the small-balance range, we will review which path fits better.
Use the form below or call (877) 298-1001 with the property type, address, price and NOI. If you are still negotiating, send the seller's rent roll and operating statements and we can tell you what the income is likely to support before you commit. Recourse varies by program, and some loans ask principals to sign for the loan personally.
Roughly $500K to $5M. Larger deals are reviewed through our broader commercial program with custom terms up to $5M+.
Yes, when the facility has an operating history and positive cash flow. We look at trailing occupancy, collections and nearby supply.
Yes, if it is leased to outside tenants. We do not finance a building your own business occupies.
On a small building it can remove a large share of income, so we look closely at lease terms, renewal history and how easily the space would re-lease.
Up to 75% LTV on acquisitions. Maximum leverage varies by property type and balance, and DSCR often sets the final number.
Often, especially on flex, industrial and retail sites with past uses that raise questions. We will tell you what the deal needs early.
Yes. LLC and other entity borrowers are standard on small-balance commercial loans.
Not always. The appraisal, lease review and any third-party reports still take time, and commercial loans take longer than residential. A complete rent roll, leases and statements at the start is the biggest factor you control.
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