Multifamily Bridge Loans in Texas

Texas multifamily bridge: indicative rates at September 28, 2026 index levels: roughly 7.3%–9.25% (middle half of repriced deals), mostly floating over SOFR, with stronger-sponsor, lower-leverage deals toward the low end. $5M–$30M · up to ~70–75% of cost · 15–30 day typical close.

These ranges take the spreads on recently closed commercial real estate loans of $5M and up (closings reported through early September 2026) and apply them to Treasury and SOFR levels as of September 28, 2026 (U.S. Treasury, NY Fed). They are indicative 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 apartment bridge loans are being sized against two things lenders can measure: how many weeks of free rent it takes to fill units in your submarket, and what the appraisal district will do to your tax bill after you buy or renovate. Deals bought or built in the 2021–2023 run are reaching maturity before some rent rolls are ready for a permanent loan. Northern Ridge Capital places $5M–$30M multifamily bridge debt across Texas by running your deal past the lenders competing for Texas apartments now, instead of taking the first quote from one bank.

The Texas apartment market, from the published data

• Texas has over 2.5 million apartment units, and 93,000 were delivered in the prior 12 months. Average effective rent was $1,372 a month in summer 2026, and the Center expects statewide deliveries of about 40,000 units over its forecast period, with rent in stabilized units flat to slightly positive (Texas Real Estate Research Center at Texas A&M, Sept. 10, 2026). Its January forecast put the end-of-2025 average at $1,440 (TRERC, Jan. 15, 2026).
• Concessions run six to eight weeks of free rent, and up to 10 to 12 weeks in some Texas submarkets. Net absorption lagged completions in most major Texas metros in 2025, and multifamily permits have fallen back to slightly above pre-pandemic levels (Federal Reserve Bank of Dallas, Mar. 23, 2026).
• Renters keep arriving. Texas added 391,243 residents from July 2024 to July 2025, the most of any state. Harris County (+48,695) and Collin County (+42,966) ranked first and second among U.S. counties for numeric growth. Houston added 126,720, the most of any metro, and Dallas-Fort Worth added 123,557 (U.S. Census Bureau, Jan. 27, 2026; Mar. 26, 2026).

Put together, the new supply is slowing and the population is still growing, but concessions haven't burned off. That's why a lot of Texas multifamily sits on bridge debt instead of permanent financing: the asset has to reach a stabilized rent roll before the takeout pencils, and the bridge lender sizes to that plan.

Worked example: concessions and the tax reset

Illustrative only. Rents, price, tax rate and loan terms are hypothetical. The concession range is the Dallas Fed's, and SOFR is the New York Fed's Sept. 28, 2026 print.

Concessions. On a 12-month lease at $1,400 asking, 8 weeks free cuts effective rent by 8 ÷ 52 = 15.4%, to about $1,185. At 6 weeks it's 11.5%, and at 12 weeks it's 23.1%. Across 240 units at 8 weeks, that's about $620,000 a year of rent the pro forma can't count until concessions end.

Tax reset. Lenders underwrite taxes as if the appraisal district will catch up to your purchase price or renovated value, not the seller's in-place assessment. Buy at $30M where the seller was assessed at $22M, at a hypothetical 2.2% combined rate, and the tax bill goes from $484,000 to $660,000. That's $176,000 a year off NOI.

What that does to proceeds. Price the bridge off SOFR: 3.90% (the Federal Reserve Bank of New York's Sept. 28, 2026 print) plus a hypothetical 4.50% spread gives 8.40%, interest-only. At 1.25x coverage, every $1 of NOI supports about $9.52 of loan, so the $176,000 tax increase alone removes about $1.68M of proceeds. Budget the reassessment up front and you won't find that gap at the term sheet.

Texas-specific timing a bridge borrower should know

Texas property tax protests are due by May 15 or 30 days after the appraisal district's notice is delivered, whichever is later (Texas Comptroller). If you're mid-business-plan on a bridge, a missed protest leaves that year's appraised value in place, and any coverage test at extension or payoff runs on the actual tax bill. Put the protest date on the same calendar as your extension notice.

Why use a broker for a Texas bridge loan

Bridge lenders don't read a Texas lease-up the same way. Some won't touch an asset still running concessions to hit occupancy. Others will, at lower leverage or with a larger interest reserve. They draw the line on recourse in different places, and they differ on Austin versus Houston. We package the deal the way bridge lenders and debt funds underwrite it, including the taxed-up expense line, take it to the ones competing for Texas multifamily from a network of 700+, and make them bid. NRC earns a 1% origination fee, paid only when the deal closes.

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. For other Texas property types, see Texas commercial bridge loans.

Outside Texas, see multifamily bridge loans nationwide.

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

Lease-up through concessions

A newer asset still giving free rent won't qualify for agency or bank permanent debt yet. The bridge carries it until concessions burn off and the effective rent roll supports the takeout.

Value-add and repositioning

Renovating or re-tenanting an under-performing property? Bridge debt funds the plan now, and you refinance once the property stabilizes and the numbers still work after the reassessment.

Time-sensitive acquisitions

In a competitive Texas deal, the buyer who can close reliably wins. A bridge lined up before you bid keeps financing off the list of reasons a seller picks someone else.

A 2021-2023 loan coming due early in the lease-up

If your construction or acquisition loan matures while concessions are still running, or your bank has gone quiet, a bridge pays it off and carries the property until effective rents support a permanent loan.

Texas multifamily bridge loans: FAQ

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

Taking the spreads on recent closings and applying them to index levels as of September 28, 2026, loans here would run roughly 7.3%–9.25% (middle half of repriced deals), mostly floating over SOFR, with stronger-sponsor, lower-leverage deals toward the low end. That is indicative market data, 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. A purchase or a value-add plan can lead to a higher appraised value, and bridge lenders underwrite the taxed-up expense line at stabilization, not your in-place taxes. In the example above, a $176,000 tax increase cuts proceeds by about $1.68M. Budget the reassessment up front and protest on time.

How do concessions affect my bridge loan?

Lenders underwrite effective rent, not asking rent. The Dallas Fed reported six to eight weeks of free rent as common in Texas, and up to 10 to 12 weeks in some submarkets. On a 12-month lease, 8 weeks is a 15.4% cut to effective rent. The lender will ask when your concessions end, and your lease-up plan should answer that.

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

Supply. The Texas Real Estate Research Center counted 93,000 units delivered in the prior 12 months, and net absorption lagged completions in most major Texas metros in 2025, per the Dallas Fed. Assets still leasing up through concessions don't qualify for permanent debt yet, so a bridge carries them.

How fast can a bridge loan close in Texas?

Usually 15 to 30 days on a lender-ready file. The appraisal, title and how fast you can produce the rent roll and concession schedule set the 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, and industrial 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.