Texas Commercial Rehab Loans: Renovation Financing for DFW, Houston, Austin, and Statewide Commercial Properties
Texas commercial rehabilitation deals span an enormous range — from $500,000 San Antonio neighborhood commercial renovations to $20M+ Dallas urban adaptive reuse projects. The common thread is the same as everywhere: a commercial property requiring capital investment before its income can support conventional permanent financing. Texas’s four major metros each generate distinct commercial rehab deal flow. DFW: office-to-medical conversion, neighborhood retail repositioning, and industrial-to-creative-office adaptive reuse in the urban core. Houston: industrial rehabilitation in the port corridor, inner-loop mixed-use renovation, and post-flood commercial restoration. Austin: commercial repositioning for tech-adjacent tenants in East Austin and South Congress corridors. San Antonio: medical district commercial renovation, downtown repositioning, and military-adjacent commercial rehabilitation near JBSA.
MKK Capital arranges commercial rehab loans for Texas commercial properties through our private capital network. All property types, all Texas markets.
Texas Commercial Rehab Loan FAQ
I’m buying a Dallas suburban office building to convert to medical office. What’s different about medical office rehab underwriting?
Medical office conversion from general office requires specific renovation elements: medical-grade HVAC (higher ceiling height and air changes per hour than standard office), plumbing infrastructure for exam rooms and clinical spaces, compliant accessible egress and restrooms to ADA standards, and often specialized electrical for medical equipment. These requirements increase renovation costs relative to standard office rehab. However, medical office commands higher rents per square foot than general office in most Dallas submarkets — and medical tenants have longer average lease terms with higher renewal rates, supporting stronger exit valuations. The ARV for medical office conversion is evaluated using medical office comparable rents and cap rates, which are distinct from general office metrics.
A Houston commercial property I’m considering had flooding in Harvey. What due diligence is required?
Post-Harvey due diligence for Houston commercial properties should include: flood elevation certificate confirming current FEMA flood zone designation; documentation of any flood claims filed and paid on the property; a physical inspection report addressing any flood-related structural damage (foundation, wall systems, HVAC) that may have been incompletely remediated; Phase I environmental assessment (flooding can mobilize soil contaminants); and confirmation of current insurance availability and premiums. Properties with multiple flood claims, incomplete prior flood remediation, or in the highest-risk flood zones (Zone V, Coastal A) require the most careful evaluation. Properties that flooded in Harvey but have since received flood mitigation improvements (HCFCD detention basin projects, foundation elevation) are underwritten on current flood risk, not Harvey history alone.
Submit Your Texas Commercial Rehab Scenario
Share the property address and metro, type, current condition, renovation scope and cost, purchase price or current value, and target ARV. Houston flood zone and Harvey history if applicable. Initial terms within 24–48 hours.