Texas Commercial Real Estate Loans

What Capital Partners finances in Texas

In Texas, Capital Partners arranges financing for single-tenant net lease acquisitions, multifamily, industrial and flex, retail centers, self-storage, and owner-occupied property, along with bridge and construction capital for transitional and ground-up projects. The firm places debt from banks, credit unions, life companies, CMBS lenders, debt funds, and private lenders, and arranges mezzanine, preferred equity, and joint-venture equity for larger capital stacks.

Texas has a deep bench of community and regional banks that lend actively in their home markets, and a bank that competes hard in Tarrant County may have little interest in a deal in the Rio Grande Valley. Capital Partners tracks lender appetite by property type, structure, loan size, and geography, so a Texas request goes to lenders active in that market.

• Acquisition and refinance of stabilized income property
• Net lease acquisition financing, including QSR and pad sites
• SBA 504 and 7(a) for owner-users
• Bridge, construction, and private capital
• Mezzanine, preferred equity, and joint-venture equity

Property taxes weigh on Texas underwriting

Texas has no state income tax, and local governments rely heavily on property taxes. Those taxes are often the largest operating expense on a Texas commercial property, so small changes in assessed value move net operating income and loan proceeds. Appraisal districts revalue property regularly, and a recent sale can push the assessed value toward the purchase price.

Lenders underwrite taxes on the expected assessed value after closing rather than the seller's current bill. They will also ask about pending protests and whether the owner uses a tax consultant. Sponsors should budget taxes at a realistic post-acquisition value and run the result through the DSCR calculator before relying on proceeds from a broker's pro forma.

Valuation, insurance, and foreclosure in Texas

Texas is a non-disclosure state, which means sale prices generally are not recorded in public records. Appraisers rely on broker and data-provider comparables and on income approaches, and lenders can be more conservative when comparable sales are thin. A sponsor who can document recent comparable trades and signed leases helps the appraisal and the lender's value conclusion.

Insurance is another Texas-specific cost. Hail and severe storm exposure across much of the state and windstorm and flood exposure on the Gulf Coast raise premiums and deductibles, and lenders underwrite current quotes rather than historical cost. Texas commercial loans are typically secured by a deed of trust with nonjudicial foreclosure, which lenders view as a predictable enforcement process.

Texas closings and net lease experience

The firm's published Texas closings are 2 single-tenant QSR acquisitions financed with fixed-rate debt: $1.4M in Houston and $1.011M in Midlothian. Lenders on single-tenant QSR acquisitions focus on the tenant and franchisee credit, remaining lease term, rent relative to store sales where reported, and the real estate value if the operator left.

Kevin Heisser, the firm's CEO and founder, has development experience that includes build-to-suit work for 7-Eleven, Circle K, Taco Bell, and Chick-fil-A across the country, and has worked in real estate and development since 1996. That background is directly relevant to the QSR, convenience, and pad-site deals common along Texas growth corridors. See net lease property financing for more on how lenders underwrite single-tenant assets.

Working with the Fort Worth office

Capital Partners has an office in Fort Worth and another in Westlake Village, California, and arranges loans nationwide. Texas sponsors get the same process as any other borrower: a principal reviews the request, identifies the lender types that fit, and tells you what lenders will question before the deal goes out.

Start with a rent roll or lease abstract, trailing operating statements, a realistic tax and insurance budget, and your target proceeds. For ground-up projects, see Texas construction loans. For short-term private capital, see Texas hard money loans. When you are ready, submit your deal.

Published closings

See all 30 transactions

Common questions