BridgeCo Financial

Commercial Real Estate Lender

Direct, private, Texas-based lender

Lender for most commercial properties

Loans ranging from $500k to $10 million

December 2023 Newsletter

December 21, 2023
Written by Joshua Huse

In the ever-evolving landscape of commercial real estate (CRE), Texas stands out as a beacon of growth and opportunity. As a commercial bridge loan lender, BridgeCo Financial is thrilled to provide a comprehensive analysis of recent developments shaping the thriving markets in Austin, San Antonio, Houston, and Dallas-Fort Worth. From noteworthy transaction volumes to innovative projects, Texas emerges as a dynamic and diverse hub, capturing the attention of CRE investors seeking lucrative opportunities in these major metropolitan areas.

 


 

DFW’s Dominance

Dallas-Fort Worth (DFW) continues to dominate the national commercial property transactions, securing the top spot for the third consecutive year with a remarkable $13.2 billion in Q3 2023. Despite a dip in office transactions, the region presents a silver lining — opportunities abound in distressed properties. Visionary developers, such as M2G Ventures, champion adaptive reuse strategies to tackle high costs, demonstrating resilience and creativity in navigating market challenges. The burgeoning population in DFW is driving transformations, with a notable shift from office to multifamily spaces, presenting a compelling narrative for investors seeking strategic diversification. Financing challenges may pose a concern for industrial development in 2024, urging investors to adopt a strategic and cautious approach. Despite these concerns, the construction industry remains robust, actively engaging in diverse projects that contribute to the region’s economic vitality.

 


 

Houston’s Resilience

Shifting our focus to Houston, the commercial real estate market showcases resilience and diversity. Notable leasing and pre-leasing activities in industrial spaces like the Great 290 Distribution Center and Vault Distribution Center underscore the city’s strategic location and economic vibrancy. The office sector remains robust, exemplified by leasing transactions at Texas Tower and Corporate Centre in Westway Park. The market’s versatility is evident in transactions ranging from multifamily acquisitions to coworking space expansions, highlighting opportunities across different asset classes. Key leadership appointments and the entry of new players like New Home Co. signal a strategic focus on expertise and sustained investor interest. Significant funding for projects, such as BGFP International’s cold storage facility, further contributes to a positive outlook for Houston’s commercial real estate market.

 


 

Central Texas’ Dynamic Landscape

In Central Texas, encompassing Austin and San Antonio, positive developments continue to unfold across various sectors. The initiation of Presidium 183, a 374-unit multifamily project in North Austin, is indicative of a surging demand for modern residential properties. The fully leased warehouse sale in San Antonio highlights the region’s robust industrial real estate market, driven by economic activities and logistics demand. The 1031 exchange-driven sale of the Commerce Building, coupled with 40 percent occupancy, signals sustained investor interest, potentially leading to further development. The ongoing remodeling of the Hyatt Place hotel in San Antonio and Nike’s expansion in Austin underscore the region’s appeal to both tourists and businesses alike. To navigate this thriving landscape successfully, investors are advised to monitor economic conditions, population growth, and market trends closely. Central Texas is not just a market; it’s a dynamic ecosystem of opportunities waiting to be explored.

 


 

Conclusion

As we conclude this exploration of Texas’ flourishing commercial real estate scene, it’s evident that the state’s major metropolitan areas are beacons of resilience, innovation, and diverse investment opportunities. From the dominance of DFW to Houston’s remarkable resilience and the dynamic landscape of Central Texas, the state continues to attract investors seeking growth and prosperity. As a commercial bridge loan lender, BridgeCo Financial remains committed to providing insights and solutions to navigate this vibrant market. Stay tuned for more updates as we continue to uncover the evolving commercial real estate landscape in Texas.

Houston, TX | $2,964,072

Acquisition & Rehab

Drawing upon extensive experience and an impressive multi-family portfolio, our client approached BridgeCo with a compelling opportunity—to finance the acquisition of a diverse portfolio comprising 10 multi-family properties. Recognizing the urgency of a quick closing, BridgeCo efficiently navigated the process, showcasing our commitment to agility and effectiveness. In an impressive feat, we funded the deal within two weeks, enabling our client to swiftly rehabilitate the properties. Subsequently, the properties were successfully sold in a timely manner, highlighting the collaborative efforts of both our borrower and BridgeCo in seizing and capitalizing on strategic real estate opportunities.

Lockhart, TX | $7,200,000

Cash-out Refinance

Drawing on their extensive experience in real estate development, the borrower strategically utilized the funds to refinance a seller note tied to the property. This land, pivotal for the creation of a comprehensive master-planned community predominantly featuring single-family residences, became the focal point of the borrower’s vision. Recognizing the time-sensitive nature of the endeavor, BridgeCo expedited the process, leveraging our borrower’s profound expertise in the field. In an impressive feat, we funded the deal within two weeks, playing a pivotal role in bridging the financial gap and propelling the borrower to the next stage of development.

Houston, TX | $4,100,000

Cash-out Refinance

The borrower strategically utilized the funds to refinance existing loans on their properties, concurrently securing a cash-out portion to facilitate the buyout of three partners. Recognizing the time-sensitive nature of the transaction, BridgeCo harnessed the robust financial position of the parent company, coupled with the cash flow generated from the subject property, to seamlessly fund the loan within one week.

Wimberly, TX | $8,715,000

Acquisition

BridgeCo seized the opportunity presented to us when the borrower encountered a pressing deadline for Phase 2 of their master-planned community development project. Despite having secured approval from a conventional lender, the borrower faced a challenge as the lender couldn’t meet the stringent timeline. Leveraging our streamlined approval process, we successfully facilitated the funding needed to meet the borrower’s closing date, completing the deal within two weeks.

Austin, TX | $850,000

Cash-out Refinance

With a robust background in real estate construction, our experienced borrower approached BridgeCo seeking to refinance an existing loan on a property nearing its renewal date. Bridging the financial needs seamlessly, we not only assisted in refinancing the loan before its maturity but also facilitated a cash-out portion. Recognizing the time-sensitive nature of the borrower’s requirements, BridgeCo expedited the process and funded the deal within two weeks. This additional capital empowers our client to embark on the construction of a new project in the vibrant Austin, TX area.