Tee Corley
Published on:
May 23, 2022
min. read

Top 12 Texas Commercial Real Estate Lenders

If you’re looking for commercial lenders in Texas, we’re here to help. Our team of commercial brokers and CRE experts hand-picked these nine commercial banks in Texas and three private lenders based on their trustworthiness, flexibility and how well they serve Texas’ commercial real estate middle market. Brian Hwang, Director of Lender Relationships at Lev and contributor to this list, explained, “These are banks that are integrated into the local Texas communities that they serve,” adding that they have a strong and long history of real estate lending in their areas. For the Texas-based private lenders and debt funds, Hwang said, “[they] have strong track records of active origination in the Texas markets,” making them reliable and proven options.

In this article, you’ll learn which Texas commercial lender is the best fit for your project. From construction loans to multifamily permanent loans, there’s a lender here for you.

9 Best Commercial Banks in Texas for Commercial Real Estate Loans

The security and low interest rates offered by banks is appealing to many commercial real estate investors and developers. These Texas banks are great options for construction and permanent loans, bridge loans for multifamily, hospitality, retail, office and industrial projects.

If your project doesn’t fit neatly into one of these categories, you might have trouble getting a traditional commercial mortgage. If that’s you, skip to the private lenders section below.

1. Wallis Bank

Wallis Bank boasts having survived the Great Depression, both World Wars and the Great Recession without taking any government assistance. A full-service community bank, Wallis is able to take on small, rural clients to large, international clients. When it comes to commercial real estate loans in Texas, Wallis Bank is a flexible option for your CRE project. This commercial lender is active in construction and permanent loans, and is actively lending on multifamily, hotels, gas stations and industrial real estate. Wallis Bank is also an SBA lender.

2. Texas Brand Bank

Based in Dallas, Texas Brand Bank serves the Dallas-Fort Worth (DFW) metroplex. Established in 2005, Texas Brand Bank remains locally owned and operated, complete with the personalized experience you’d expect from a neighbor. Still, the commercial lender has grown to over $340 million in assets. Texas Brand Bank will consider all asset classes including hotels, land, retail, RV parks, manufactured housing and self-storage. It is also an SBA lender.

3. Origin Bank

With an emphasis on building strong relationships, Origin Bank, headquartered in Louisiana, serves Texas, Louisiana and Mississippi. If you’re looking for a bank that’s active in the community and has thoughtful values, this commercial lender is a great option. Origin Bank is active in self-storage, student housing, townhome construction, medical office and manufactured housing.

4. Valliance Bank

Valliance Bank is a community bank based out of Oklahoma, but quickly expanding into the Texas real estate market. Using the term “relationship banking,” Valliance is dedicated to serving the needs of locals in the DFW metroplex and McKinney, Texas. Valliance Bank is active in construction financing, bridge loans and permanent loans.

5. Dallas Capital Bank

Not surprisingly, Dallas Capital Bank lends in the DFW metroplex. This commercial bank prides itself on providing expert advice and insight into commercial real estate financing in Dallas. With a wide network of relationships with local investors, financing experts and real estate professionals, Dallas Capital Bank has a wealth of knowledge to help you with your project. Dallas Capital Bank is active in construction loans, bridge loans and permanent loans across multifamily, retail, office and industrial real estate. Ask about their single-tenant NNN lease retail program.

6. Texas Gulf Bank

With nine locations along the Texas Gulf Coast, this small bank has a big impact on Texas commercial real estate. This bank is based in Houston, Texas, and they are focused on southeast Texas. If you’re looking to build in Houston, you already know how quickly the city is growing. Texas Gulf Bank is a lender that will grow with you. Texas Gulf Bank is a real estate construction lender actively lending on townhomes, multifamily, retail and industrial real estate. It has a single-tenant NNN lease retail program and is also an SBA lender.

7. Woodforest National Bank

With over 40 years of lending experience under its belt, Woodfordest National Bank is among the strongest community banks in the US. Woodforest offers creative commercial real estate lending solutions. Woodforest National Bank lends on retail, office and industrial real estate in Texas and other large markets around the country. They offer both construction loans and permanent loans.

8. Texas Capital Bank

Recognized by Newsweek as the most trusted bank in America, Texas Capital Bank is respected for its excellent leadership and relationship management. Consider Texas Capital Bank for multifamily construction in any and all Texas major markets.

9. Third Coast Bank SSB

Founded in 2008 and headquartered in Humble, TX in the Houston MSA, Third Coast Bank SSB uses cutting-edge technology and sophisticated tools to originate or refinance permanent mortgages. Third Coast Bank SSB is flexible, using a “common sense approach” to lending. They offer a personalized touch and continued advisement after closing. A local community bank, this bank is great for local Houston deals that are $10M and smaller.

3 Debt Funds and Private Lenders Based in Texas

Sometimes it’s worth it to pay a little more in interest in exchange for the flexibility of working with debt funds and private lenders. Here are three Texas commercial real estate lenders to consider.

1. Hall Structured Finance

Based in Dallas, Hall Structured Finance has an entrepreneurial spirit. If you do, too, Hall can help you turn your creative commercial real estate visions into reality. Hall is an institutional-grade debt fund family office. They focus on larger deals (over $20M) and can get to higher leverage levels than banks can. Hall Structured Finance is a family office debt fund focused on hospitality and multifamily construction financing in the sunbelt (Texas, Florida and Arizona).

2. Flagship Capital Partners

Flagship Capital Partners is an investment fund sponsor. Flagship originates custom and alternative debt and equity capital solutions to middle market commercial real estate. Since 2011, Flagship has deployed more than $450 million in first lien, mezzanine debt and equity investments. Flagship Capital Partners is based in Houston and is focused on Texas cities.

3. Peak Rock Capital

Peak Rock Capital is a leader investor in middle market commercial real estate. This Texas commercial lending institution currently boasts $4 billion assets under management, over 70 investments, and headquarters in Austin, TX and London. Peak Rock Capital offers multifamily and industrial bridge loans, mezzanine loans and preferred equity.

Should I Choose a Texas Bank or a Texas Lender?

If you’re new to commercial real estate investing, it can be especially tricky deciding between a bank vs. a direct lender. Your decision will depend on you, your project and your needs. If you’re not convinced you should choose a Texas commercial lender at all, consider what Hwang said: “Local banks know the Texas markets really well — their entire CRE loan portfolios are centered around the Texas MSAs.” Local lenders have been lending and banking with customers in the market for years.

Relationship banks offer bank-level service and, Hwang noted, “some of the cheapest debt capital in the market.” On the flipside, private lenders and debt funds are less regulated, allowing them to offer a higher LTC/LTV when last dollar leverage is required by a borrower’s business plan. In return? They get to charge higher interest rates. So while banks offer stability and lower interest rates, private lenders and debt funds can get more creative on credit structures and lend on asset classes and projects that the banks will not approve.

Texas Commercial Lending Made Easy

Finding the right commercial real estate lender for your project can cause analysis paralysis, which is why we make it simple. For help finding Texas commercial real estate financing, reach out to the experts at Lev. Find more lenders here.