Multifamily Bridge Loans in Texas

Texas multifamily bridge — recent closings (May 2026): roughly 7.5%–9.5% floating, priced at about SOFR + 4.0%–6.0%, with stronger-sponsor, lower-leverage deals toward the low end (a recent $20M Texas deal closed near 6.6%). $5M–$30M · up to ~70–75% of cost · closings as fast as 2–3 weeks.

The figures above reflect actual, recently closed commercial real estate transactions and are accurate as reported as of May 2026. They are historical market data — not an indication or offer of the rate or terms you will receive; your terms depend on the property, sponsor, market, and lender underwriting and will vary. Northern Ridge Capital arranges commercial real estate financing only (no residential) and is a licensed mortgage broker (CA DRE #02093377), not a lender. See full disclosures.

Texas has more apartments leasing up at once than any other state, and that single fact drives most of the multifamily bridge demand here. Deals bought or built in the 2021–2023 rush are reaching stabilization in a market where operators are handing out six to eight weeks of free rent just to fill units (Dallas Fed, 2026). A property that isn’t stabilized yet won’t clear agency or bank permanent debt, and a loan written at cheap-money rates may be maturing before the rent roll is ready. That gap is what a bridge loan covers. Northern Ridge Capital places $5M–$30M multifamily bridge debt across Texas by running the whole lender market for you, not taking the first quote from one bank.

Why use a broker for a Texas bridge loan

Bridge lenders are not interchangeable, and in a lease-up market that difference is money. They price the same deal differently, draw the line on leverage and recourse in different places, and some won’t touch a Texas asset still burning concessions to hit occupancy. We’re a debt brokerage, not a lender, so we work for you: we package the deal the way bridge lenders and debt funds actually underwrite it, take it to the ones competing for Texas multifamily right now, and make them bid. You get options and a real negotiating position instead of a single take-it-or-leave-it term sheet.

The Texas multifamily market: what lenders are actually pricing

Texas carries the highest multifamily vacancy of the major U.S. metros. Institutional Property Advisors put Q1 2026 vacancy at roughly 6.8% in Dallas–Fort Worth, 6.9% in Houston, 7.2% in Austin, and 7.5% in San Antonio. The cause is supply, not weak demand: the state absorbed a historic wave of new units, and the Dallas Fed reported in 2026 that the overhang is still pushing effective rents down as landlords prioritize occupancy through concessions and flexible terms. Austin is the sharpest example, where new deliveries are projected to fall from about 21,500 units in 2025 to 12,000–13,000 in 2026, with Dallas still carrying tens of thousands of units under construction entering the year. For a lender, all of that lands on one question: can this specific asset lease up on a credible timeline, or is it fighting the building next door for the same renter? That is why so much Texas multifamily is on bridge debt right now rather than permanent financing. Class A product in particular is seeing longer lease-up runways, and most researchers don’t model a real rent-growth recovery until late 2026 into 2027. A bridge lender sizes your loan to the lease-up plan and the takeout it points to, so the credibility of that plan is the whole underwriting conversation.

What’s different about financing multifamily in Texas

Two Texas-specific things move every bridge deal here. First, property taxes. Texas has no state income tax, but commercial effective rates in the big metros frequently run 2.5%–3.0% of assessed value, and a value-add plan that lifts NOI invites a reassessment that raises the tax bill right when your numbers improve. Lenders underwrite the taxed-up expense line, not your in-place taxes, which pulls down the stabilized NOI and DSCR a bridge is sized against. Second, the supply wave itself. Because so many Texas submarkets are absorbing new units at the same time, bridge lenders stress lease-up velocity and how long your concessions run before rents firm. Two properties with identical rent rolls can price differently purely on where they sit in that lease-up cycle. Getting the right lender means getting one who reads your submarket and your business plan correctly, and that is the match we run.

Recent Texas bridge pricing

In recent Texas multifamily bridge closings, pricing clustered roughly in the 7.5% to 9.5% range on a floating basis, generally SOFR plus about 4 to 6 points. A low-leverage deal with a strong sponsor came in near 6.6%, while higher-leverage value-add plans ran toward 9% and up. The permanent takeout most of these point to has been closing around 6.5% to 7%. These are actual closed transactions from observed closings, not an offer, and your number depends on leverage, the business plan, and sponsor strength.

Typical Texas multifamily bridge structure

For the national picture on sizing, see apartment building loans: how much you can borrow and what lenders ask for.

Structure shown is typical, not a quote or commitment; actual terms are set by third-party lenders subject to underwriting. See disclosures.

When a Texas multifamily bridge loan makes sense

Value-add & repositioning

Buying or holding an under-performing Texas property you plan to renovate, re-tenant, or reposition? Bridge debt funds the business plan now; you refinance into cheaper permanent debt once the property is stabilized and the taxed-up numbers still support it.

Lease-up

A newer or recently repositioned asset that isn’t stabilized won’t qualify for agency or bank permanent debt, and in Texas that lease-up can take longer than the pro forma assumed. A bridge loan carries the property through concession burn-off to a clean takeout.

Time-sensitive acquisitions

In a competitive Texas market, the buyer who can close fast and reliably wins. Bridge financing with a 2–3 week close can be the difference between getting the deal and losing it.

A maturing loan you can’t refinance yet

If your loan is maturing but the property isn’t ready for permanent financing, or your bank has gone quiet, a bridge loan prevents a forced sale and gives you runway to refinance on your terms, not the clock’s.

Texas multifamily bridge loans: FAQ

What rate can I get on a Texas multifamily bridge loan?

In observations from recent closings, loans here have run roughly 7.5%–9.5% floating, priced at about SOFR + 4.0%–6.0%, with stronger-sponsor, lower-leverage deals toward the low end (a recent $20M Texas deal closed near 6.6%) (May 2026). These are actual closed transactions, not an offer — your rate depends on the asset, leverage, and sponsor. Contact us for a live quote.

Do Texas property taxes affect how much I can borrow on a bridge loan?

Yes, and more than owners expect. Commercial effective tax rates in the major Texas metros often run 2.5% to 3.0% of assessed value, and a value-add plan that raises NOI usually triggers a reassessment that raises the tax bill too. Bridge lenders underwrite the taxed-up expense line at stabilization, not your in-place taxes, so a higher expected tax burden lowers the stabilized NOI and DSCR your loan is sized against. Budgeting the reassessment realistically up front is part of getting the leverage you want.

Why is so much Texas multifamily on bridge debt right now?

Supply. Texas absorbed a large wave of new apartments, and per IPA, Q1 2026 vacancy ran about 6.8% in DFW up to 7.5% in San Antonio, the highest among the major metros. Assets still leasing up through concessions don’t yet qualify for agency or bank permanent debt, so a bridge loan carries them until the rent roll stabilizes and a permanent takeout pencils.

How fast can a bridge loan close in Texas?

As fast as 2 to 3 weeks on a clean, lender-ready file. Title, appraisal, and how quickly your documentation comes together set the actual pace.

How much can I borrow?

We place multifamily bridge debt from $5 million to $30 million, commonly up to about 70% to 75% of cost, sized to the lease-up plan and sponsor strength.

Is a bridge loan non-recourse?

Non-recourse and partial-recourse options are both on the table depending on the lender, leverage, and deal profile. We shop the recourse terms alongside the rate.

What happens when the bridge loan matures?

The plan is to refinance into permanent or agency debt once the property is stabilized, or to sell. We help line up the takeout so you’re not caught at maturity.

Is Northern Ridge Capital a lender?

No. NRC is a commercial mortgage broker (CA DRE #02093377). We place your deal with the right lender from a network of 700+ banks, debt funds, and non-bank capital sources, and make them compete for it. We work on commercial real estate only.

Do you only work in Texas?

We place debt nationwide within our licensed footprint, with deep focus in Texas, California, Florida, Georgia, and Indiana.

About

Justin Ashcraft is the president of Northern Ridge Capital, a commercial real estate debt brokerage placing $5M–$30M in multifamily, retail, industrial, and SBA financing nationwide within its licensed footprint, with $600M+ in deal experience across underwriting and brokerage. Licensed in California, DRE #02093377.

Northern Ridge Capital is a licensed commercial mortgage broker (CA DRE #02093377), not a lender, and arranges financing on commercial real estate only (no residential). Rates and figures reflect actual closed transactions as of the date noted and are not an indication or offer of terms. For informational purposes only; not financial, legal, or tax advice. Full disclosures.