Industrial, warehouse and flex bridge loans in Texas

What Texas means for a bridge lender

Texas uses deeds of trust with non-judicial foreclosure sales held on the first Tuesday of the month, one of the fastest remedies in the country. Texas is a non-disclosure state, so appraisers rely on non-public sources for comparable sales, and property taxes are a large expense line that lenders reassess after a sale.

A power-of-sale process outside court usually lets a lender recover the property faster than a court case. Asset-based lenders who rely on the collateral rather than the borrower’s credit are often most comfortable lending where the remedy is quick and predictable.

Industrial specifics

Confirm zoning allows the intended industrial use, including outdoor storage or truck parking, and review any state environmental program records for the site before closing.

How industrial bridge loans are sized

Many asset-based bridge lenders lend around 60–75% of as-is value on industrial, with lower leverage for vacant single-tenant buildings, functionally obsolete space or properties with environmental concerns. When there is a plan to add docks, power or other improvements, some lenders fund it on a loan-to-cost basis from a holdback. Lenders may require a Phase II environmental before closing if the Phase I raises concerns, which can also reduce proceeds.

What lenders will ask for

• Rent roll with lease dates, options and expense recoveries
• All leases and amendments
• Tenant estoppel certificates
• Trailing 12-month operating statement
• Building specifications: clear height, docks, power, sprinklers, square footage
• Prior environmental reports, if any

Full list and timeline on the industrial, warehouse and flex bridge loans page.