Mixed-Use Real Estate Capital for DFW
Financing for urban infill, retail-over-residential, and vertical mixed-use development across the DFW Metroplex.
- Urban infill developments in Uptown, Deep Ellum, Cedars
- Retail-over-apartment buildings
- Main Street mixed-use in DFW suburbs
- Ground-up mixed-use in TOD areas
Mixed-Use Loans, at a glance
- Loan size
- $2M – $250M
- Amortization
- 25–30 years
- Term
- 5, 7, 10 years
- LTV
- Up to 75%
- DSCR
- 1.25x–1.35x
- Rate
- Priced to the dominant component
- Typical close
- 60–90 days
Mixed-use is one of the more interesting asset classes to finance because the capital stack depends on which component dominates the income. A building that is 80% apartment income with a small ground-floor retail tenant prices and underwrites like multifamily and can route through agency execution. A building that is 80% office with a small ground-floor retail space prices and underwrites like office. Getting the classification right is the single most important step in arranging mixed-use debt.
DFW has seen significant mixed-use development over the last decade in urban infill submarkets (Uptown, Deep Ellum, Cedars, Design District) and in emerging suburban centers (Frisco's Legacy West, Plano's Legacy, Las Colinas urban center, Grapevine Main). We arrange debt on ground-up mixed-use construction, on stabilized mixed-use refinancing, and on acquisitions of existing mixed-use product across the market.
Agency multifamily with ground-floor retail
If the multifamily component exceeds 80% of the gross rent (and certain minimum leasing thresholds), Fannie Mae and Freddie Mac will treat the asset as multifamily for underwriting purposes and quote through agency execution. This is a major cost advantage, agency rates are inside CMBS and life-co on comparable product, and agency non-recourse is cleaner.
The threshold has specific rules. Freddie Mac generally requires the commercial portion to be no more than 35% of GLA and 20% of gross rent. Fannie Mae has similar limits. If the commercial portion exceeds those limits, the deal routes to CMBS or bank execution instead. We pre-analyze the rent roll against agency rules on every mixed-use file.
CMBS and bank execution for true mixed-use
When the commercial portion is too large for agency treatment, CMBS is often the best execution because it can handle complex capital structures and mixed income streams. CMBS lenders underwrite each component separately, apply the appropriate debt service coverage requirement to each, and quote accordingly.
Bank execution is the alternative and is usually faster. Relationship banks in DFW write mixed-use deals for strong local sponsors with shorter closing timelines than CMBS and more flexibility during the loan term. Trade-off: usually recourse and shorter terms.
Ready to explore Mixed-Use options?
Get a QuoteMixed-Use Loans, FAQ
Can I get agency financing on mixed-use in DFW?
Yes, if the commercial portion stays below the agency thresholds. Freddie Mac and Fannie Mae both allow ground-floor retail or office on a multifamily building if the commercial space is limited relative to total GLA and gross rent. We run every mixed-use file against agency rules first because the pricing advantage is substantial.
How does the commercial tenant's credit affect the loan?
Enormously on deals where commercial is a meaningful share of income. A national credit tenant on a long lease improves leverage, pricing, and execution options. A month-to-month local tenant does the opposite. We treat the rent roll as the most important underwriting document on mixed-use.
Can I finance mixed-use ground-up construction in DFW?
Yes. Mixed-use construction is a common use case for DFW bank and debt fund construction lenders. The lender will underwrite both components: the residential lease-up economics and the commercial leasing plan (or credit tenant pre-lease). Take-out options include agency for the multifamily-dominant path or CMBS/bank for the commercial-dominant path.
What makes a mixed-use deal hard to finance?
Uneven performance between components. A fully leased commercial base with a vacant apartment component is easier to finance than a fully leased apartment component with a struggling commercial base. Most lenders will underwrite to the weaker half of the deal. Sponsors who can stabilize both components before refinancing get the best terms.
Is mixed-use non-recourse?
Agency mixed-use and CMBS mixed-use are non-recourse with standard bad-boy carve-outs. Bank mixed-use is usually recourse below $5M and negotiable above. Construction mixed-use is typically recourse until stabilization, at which point the permanent loan takes over with non-recourse terms.
Other loan programs
SBA
SBA Loans
Government-guaranteed financing for owner-users buying, building, or expanding commercial property across North Texas.
- Loan size
- $150K → $15M
- Close
- 45–75 days
SBA 504
SBA 504 Loans
The only commercial loan product in the country that gives owner-occupiers a 20- or 25-year fixed rate on 40% of their purchase.
- Loan size
- $500K → $15M
- Close
- 60–90 days
SBA 7(a)
SBA 7(a) Loans
The most flexible small-business loan in the country, real estate, acquisition, equipment, and working capital in a single package.
- Loan size
- $50K → $5M
- Close
- 45–60 days with Preferred Lender
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