Dallas Mixed-Use Loans: Live-Work-Play Development Financing [2026 Guide]

Dallas-Fort Worth has emerged as one of the most active mixed-use development markets in the country. With over $10 billion in live-work-play projects underway across the metroplex, DART rail driving transit-oriented density along 93 miles of light rail, and a population that added 234,000 new residents in 2024 alone, the opportunity for mixed-use investment in North Texas is enormous. Securing the right Dallas mixed-use loans requires understanding the local market dynamics, zoning incentives, and financing structures that make these projects pencil in a metro defined by rapid suburban expansion and urban infill happening simultaneously.

Whether you are pursuing a ground-up development near a DART station in Deep Ellum, acquiring a retail-over-residential property in Bishop Arts, or repositioning a value-add asset at one of the suburban town centers reshaping Plano, Frisco, or Richardson, this guide covers every financing angle specific to the Dallas mixed-use market.

Why Is Dallas One of the Best Markets for Mixed-Use Investment in 2026?

Dallas-Fort Worth has built a compelling case for mixed-use investors through a combination of explosive population growth, corporate relocations, and a development-friendly regulatory environment. Several factors set the metro apart:

Population growth continues to outpace nearly every major U.S. metro. The DFW metroplex added 234,125 new residents in 2024, with Collin County alone gaining nearly 76,000 people. The region now exceeds 8.7 million residents, representing growth of more than 886,000 since the 2020 Census. This growth creates sustained demand for both residential units and the retail, restaurant, and office space that mixed-use projects integrate.

The economy ranks among the largest and fastest-growing in the nation. The Dallas-Fort Worth-Arlington MSA produced $744.6 billion in GDP in 2023, ranking fifth among all U.S. metros and accounting for 3.0% of the national metropolitan total. Real GDP growth of 3.2% outpaced the national metro average of 2.7%. Corporate headquarters continue to relocate and expand here, with Goldman Sachs building a $500 million, 800,000-square-foot campus in Uptown bringing 5,000 employees to the urban core.

Billions in mixed-use development are actively under construction. The Knox Street development by Trammell Crow is a one-million-square-foot project opening in 2026 with a 140-room hotel, 48 ultra-luxury condos, 150,000 square feet of Class A office, and two floors of retail. Quadrant Investment Properties is building Addison Junction, a $240 million, 14-acre mixed-use project with an office building, boutique hotel, entertainment space, and a Texas-themed beer garden. Hi Line Square is bringing new mixed-use density to the Design District. Fields West spans 2,500 acres in Denton and Collin Counties with Class A office, retail, entertainment, and residential phases beginning delivery in mid-2026.

DART rail is reshaping development patterns. DART's 93-mile light rail system has attracted $18.1 billion in transit-oriented development within a quarter-mile of stations over 25 years. The Silver Line, a new 26-mile regional rail corridor connecting East Plano to DFW Airport, is targeting service launch in early 2026 and will create entirely new mixed-use development opportunities.

Commercial mortgage rates in Texas start as low as 5.18%, with mixed-use properties typically falling in the 5.5% to 7.5% range depending on leverage, property type, and borrower strength. Multifamily cap rates for Class A properties in premium submarkets like Uptown, Plano, and Frisco trade at 4.8% to 5.2%, while value-add suburban deals yield 5.7% to 6.3%.

What Loan Types Work Best for Dallas Mixed-Use Properties?

Mixed-use properties blend residential and commercial uses under one roof (or across a connected campus), making them more complex to finance than single-use buildings. The loan structure depends on the property's use ratio, location within the DFW metro, and your investment timeline.

Conventional Commercial Mortgages offer terms of 5 to 25 years with fixed or adjustable rates. As of early 2026, rates for stabilized mixed-use properties in Dallas range from 5.5% to 7.0% with 65% to 75% LTV. These work well for investors acquiring stabilized mixed-use assets in established corridors like Uptown, Knox-Henderson, or Legacy West.

SBA 504 Loans are ideal for owner-occupants who use at least 51% of the building. The program provides up to 90% financing with below-market fixed rates, making it popular among Dallas entrepreneurs who want to own their mixed-use building rather than lease. Explore SBA loan programs for full details.

Bridge Loans serve investors who need to acquire, reposition, or stabilize a mixed-use property before securing permanent financing. A bridge loan provides short-term capital to renovate and lease up value-add mixed-use buildings in transitioning Dallas neighborhoods like Deep Ellum, the Cedars, or West Dallas.

DSCR Loans qualify borrowers based on the property's debt service coverage ratio rather than personal income. Dallas mixed-use properties with strong rental income can qualify with DSCR ratios as low as 1.20x.

Construction-to-Permanent Loans finance ground-up mixed-use developments from construction through stabilization in a single close. These are common for the wave of new suburban town center projects across Collin and Denton Counties.

Value-Add Financing combines acquisition and renovation capital for investors repositioning older properties along established Dallas corridors. Learn more about value-add strategies.

How Does DART Rail Transit-Oriented Development Affect Mixed-Use Financing?

DART operates the longest light rail system in the country at 93 miles, connecting Dallas, Plano, Richardson, Garland, Irving, and Carrollton across Red, Blue, Green, and Orange lines. Properties near DART stations have attracted $18.1 billion in transit-oriented development over 25 years, with $1.0 billion in direct impact from 2022 to 2024 alone. The upcoming Silver Line adds a 26-mile regional rail corridor from East Plano through Richardson, the UT Dallas area, Addison, and on to DFW Airport, creating entirely new TOD zones.

Dallas established a TOD Tax Increment Financing (TIF) District in 2008, covering eight stations across four sub-districts along the Red and Blue lines. These districts provide specific incentives for mixed-use projects near rail stations:

• Tax increment financing that redirects incremental property tax revenue to fund infrastructure improvements around stations
• Increased density allowances permitting more residential units per acre than base zoning
• Reduced parking requirements cutting structured parking costs significantly (structured parking runs $25,000 to $50,000 per space in Dallas)
• Streamlined entitlement processes through the DARTSpace platform, launched in 2025 to simplify TOD applications

Several major mixed-use TOD projects are actively moving forward. Mockingbird Station's expansion broke ground in January 2026 with two multifamily communities, an office tower, a hotel, and 500-space underground parking replacing 11 acres of DART-owned surface parking. Buckner Station is a $107 million, 304-unit mixed-income apartment community developed through a partnership between DART, the City of Dallas, and Palladium USA. Lancaster Urban Village at the VA Medical Center Station became the first mixed-use TOD project in the TIF district.

For financing, transit-oriented mixed-use projects offer advantages that lenders recognize and reward. Properties within a quarter-mile of DART stations command rental premiums of 10% to 20%, supporting larger loan amounts. Reduced parking requirements can save hundreds of thousands of dollars in construction costs, improving loan-to-cost ratios on ground-up projects. National investors and REITs actively seeking transit-oriented assets create strong exit options for bridge loan borrowers planning to stabilize and sell.

What Are Current Mixed-Use Loan Rates and Terms in Dallas?

Loan rates for mixed-use properties in Dallas vary based on property type, leverage, borrower strength, and market conditions. As of early 2026, here is a snapshot of typical terms:

With rates in the 5.5% to 7.0% range for stabilized properties, cash flow analysis is more critical than ever. Borrowers should run projections using our commercial mortgage calculator to ensure positive leverage on their Dallas mixed-use investment.

Lenders evaluating mixed-use properties in Dallas pay close attention to the residential-to-commercial ratio. Properties with 70% or more residential use generally qualify for more favorable residential lending terms, while those with a larger commercial component face stricter underwriting. The ideal mix for most DFW mixed-use buildings falls between 65% and 80% residential, with ground-floor retail, restaurant, or office space making up the balance.

Texas has no state income tax, which is a significant draw for both residents and businesses. However, property taxes in Dallas County average 2.0% to 2.4% of assessed value, among the highest in the nation. Lenders build these tax costs into their underwriting, and borrowers must account for them in their pro forma. The good news is that high property taxes are partially offset by strong rental demand and no state income tax burden on investment returns.

Which Dallas Neighborhoods Offer the Best Mixed-Use Opportunities?

The DFW metroplex offers an unusually diverse range of mixed-use investment opportunities, from dense urban infill in Dallas proper to master-planned suburban town centers across Collin and Denton Counties. Location selection directly impacts financing terms, rental income potential, and exit strategy.

Uptown and Victory Park Uptown remains the premier mixed-use submarket in Dallas with the highest residential rents and strongest retail tenancy in the metro. Victory Park, anchored by the American Airlines Center, continues to evolve with new residential and hospitality mixed-use. Goldman Sachs' $500 million campus will drive additional density in the adjacent North End district. Cap rates range from 4.5% to 5.5%.

Deep Ellum Dallas' arts and entertainment district has transformed into a high-demand mixed-use neighborhood. Projects like Novel Deep Ellum (231 units with ground-floor retail and entertainment) exemplify the live-work-play format investors seek. Designated as a Texas Cultural District, Deep Ellum commands strong rents for residential units above restaurants, galleries, and creative office. Cap rates range from 5.0% to 6.0%.

Bishop Arts and North Oak Cliff Bishop Arts offers a walkable, neighborhood-scale mixed-use environment with boutique retail and independent restaurants supporting residential above. Nearly 5,000 new apartments have been added in the surrounding 75208 zip code over the past decade. Ferguson Flats and Bowie at Bishop Ridge represent the mixed-use development pattern continuing in this submarket.

Design District and Hi Line The Design District is transitioning from showrooms and warehouses to a mixed-use neighborhood. Hi Line Square, a new 2.2-acre development, is bringing residential, retail, and creative office to the corridor. Proximity to the DART Blue Line and Uptown makes this area attractive for developers and investors.

Legacy West and The Star (Plano/Frisco) Legacy West in Plano has become the gold standard for suburban mixed-use in Texas, combining luxury residential, Class A office (Toyota, JPMorgan Chase, Liberty Mutual), and high-end retail in a walkable campus. The Star in Frisco, anchored by the Dallas Cowboys headquarters, integrates a hotel, office, residential, and retail around a public event space. Legacy West Residences Phase II is delivering in late 2025. These projects demonstrate the institutional appetite for DFW suburban mixed-use.

CityLine (Richardson) State Farm's 2.2-million-square-foot campus anchors CityLine, a 186-acre mixed-use development along the DART Red Line. The project combines corporate office, apartments, retail, restaurants, and a 96-room hotel. CityLine proves the viability of suburban TOD mixed-use in Dallas and offers a template for similar developments along the new Silver Line.

Addison and North Dallas Addison Junction, a $240 million mixed-use project spanning 14 acres, represents the next wave of suburban mixed-use in this submarket. The project includes a 155,550-square-foot office building, boutique hotel, entertainment venues, and a Texas-themed beer garden.

How Should You Underwrite a Mixed-Use Property in Dallas?

Underwriting a mixed-use property in Dallas requires evaluating both the residential and commercial components separately, then combining them into a blended analysis. Lenders focus on several key metrics:

Debt Service Coverage Ratio (DSCR): Most lenders require a minimum DSCR of 1.20x to 1.25x for stabilized mixed-use properties. For value-add properties, lenders may underwrite to a projected DSCR upon stabilization.

Vacancy Assumptions: Lenders typically assume 5% to 7% vacancy for residential units and 10% to 15% for commercial space. Multifamily occupancy across DFW's Class A properties remains strong, with Uptown, Plano, and Frisco leading the metro.

Expense Ratios: Dallas mixed-use properties carry operating expenses ranging from 35% to 45% of effective gross income. Higher property taxes (2.0% to 2.4% vs. 0.6% to 0.8% in Phoenix or 1.1% in Los Angeles) are the primary driver. Insurance costs have risen due to hail and severe weather exposure, averaging $1,200 to $1,800 per unit annually.

Commercial Tenant Quality: Ground-floor tenants with national credit strengthen underwriting significantly. Lenders prefer leases with at least 5 years remaining and annual rent escalations of 2% to 3%.

Texas-Specific Considerations: No rent control gives investors full flexibility on residential rents. Texas has no state income tax, improving investor returns after tax. However, property taxes are among the highest in the nation and must be carefully modeled. Lenders experienced with Dallas mixed-use properties understand these dynamics and underwrite accordingly.

What Are the Biggest Risks to Mixed-Use Projects in Dallas?

Every market has risk factors that lenders and investors must evaluate. Dallas mixed-use projects face several specific challenges:

High property taxes. Dallas County property tax rates of 2.0% to 2.4% are significantly higher than most competing Sun Belt metros. For a $20 million mixed-use property, annual property taxes of $400,000 to $480,000 have a meaningful impact on debt service coverage and cash flow. Lenders underwrite to these elevated costs, and borrowers must ensure their pro forma accounts for potential assessment increases.

Severe weather and insurance costs. North Texas experiences hail storms, tornadoes, and severe weather that have driven commercial insurance premiums higher in recent years. Mixed-use buildings with extensive glass facades and rooftop amenities face higher insurance costs. Budget $1,200 to $1,800 per residential unit for insurance, with commercial components priced separately.

Suburban supply pipeline. The volume of master-planned mixed-use development across Collin, Denton, and Tarrant Counties has raised absorption concerns in certain submarkets. Fields West (2,500 acres), The Mix (112 acres with 3,000 residential units), and numerous other projects are delivering simultaneously. Lenders may require higher pre-leasing thresholds for construction loans in submarkets with heavy pipeline activity.

Interest rate sensitivity. With commercial mortgage rates ranging from 5.5% to 7.5%, small rate movements have meaningful impacts on debt service coverage. Texas' high property taxes compound this sensitivity because fixed costs are already elevated. Borrowers should stress-test their pro formas at rates 0.5% to 1.0% above current levels.

Suburban vs. urban demand shifts. Dallas' mixed-use market spans dense urban infill and sprawling suburban town centers. Economic cycles can shift demand between these formats. Properties with strong fundamentals in both scenarios, such as DART-connected locations with walkability and parking, tend to perform most consistently.

What Steps Should You Take to Finance Your Dallas Mixed-Use Project?

Financing a mixed-use property in Dallas requires careful preparation and a strategic approach. Follow this process to position your project for the best possible terms:

Step 1: Evaluate Location and Zoning. Before making an offer, confirm the property's zoning supports your intended mixed-use program. Check proximity to DART stations, TOD TIF District eligibility, and planned development (PD) district provisions. These factors directly affect density, parking requirements, and lender appetite.

Step 2: Assemble Your Pro Forma. Build a detailed development budget and operating pro forma that accounts for Dallas-specific costs including property taxes at 2.0% to 2.4%, elevated insurance for hail and severe weather, commercial tenant improvement allowances, and seasonal variations in retail foot traffic. Use the commercial mortgage calculator to test different financing scenarios.

Step 3: Choose the Right Loan Product. Match your financing to your investment strategy. Stabilized acquisitions may work best with conventional commercial mortgages or DSCR loans. Owner-occupied properties benefit from SBA 504 financing. Value-add projects require bridge loans before transitioning to permanent financing. Ground-up developments need construction-to-permanent loans.

Step 4: Prepare Your Loan Package. Lenders financing Dallas mixed-use properties will require a completed loan application, personal financial statements, property appraisal, environmental Phase I assessment, rent rolls and lease abstracts, historical operating statements (for existing properties), and a development budget with construction timeline (for new construction).

Step 5: Secure Approvals and Close. Work with a lender experienced in Dallas mixed-use financing who understands Texas' regulatory environment, DART TOD incentives, and the local market dynamics that affect underwriting. An experienced lender can often identify structural advantages that improve your overall deal economics.

Contact our team today to discuss your Dallas mixed-use financing needs. We specialize in structuring loans for transit-oriented and infill mixed-use developments across the DFW metroplex.

What Emerging Trends Will Shape Dallas Mixed-Use Lending Through 2026?

The Dallas mixed-use market is evolving rapidly. Several trends will influence financing strategies through 2026 and beyond:

Suburban town center development is accelerating. Legacy West, The Star, and CityLine have proven the model. Now projects like Fields West, Addison Junction, and The Mix are scaling it further. Lenders have grown comfortable with suburban mixed-use in DFW because these projects consistently demonstrate strong absorption and stable returns.

DART Silver Line creates new development corridors. The 26-mile regional rail line connecting East Plano through Richardson, Addison, and on to DFW Airport creates entirely new TOD opportunities. Mixed-use projects near future Silver Line stations will benefit from the same financing advantages that Red and Blue Line TOD projects have enjoyed for decades.

Corporate relocations continue to drive demand. Goldman Sachs' $500 million Uptown campus, ongoing expansion at Legacy West, and a steady pipeline of corporate moves to North Texas create sustained demand for the residential, retail, and dining components of mixed-use projects.

Adaptive reuse is gaining momentum. The redevelopment of aging retail centers and office buildings into mixed-use properties is accelerating across Dallas. The transformation of Valley View Mall into a Toyota and Panasonic-backed development exemplifies this trend. Lenders familiar with adaptive reuse in Dallas can structure bridge financing that accounts for the repositioning timeline.

Walkability premiums are increasing. Properties in walkable mixed-use environments command 15% to 25% rent premiums over comparable suburban apartments. This trend favors both urban infill and well-designed suburban town centers with pedestrian connectivity.

Ready to explore mixed-use financing in Dallas? Our team can help you identify the right loan structure for your project, whether you are acquiring a stabilized asset, pursuing a transit-oriented development, or converting an underperforming property to mixed use.

Frequently Asked Questions About Mixed-Use Loans in Dallas

What is the minimum down payment for a mixed-use property loan in Dallas?

Down payment requirements depend on the loan type and property characteristics. Conventional commercial loans typically require 25% to 35% down (65% to 75% LTV). SBA 504 loans can go as high as 90% LTV, requiring only 10% down for owner-occupied mixed-use properties. Bridge loans range from 20% to 35% down depending on the lender and project risk profile.

Can I use a residential loan for a mixed-use property in Dallas?

In some cases, yes. If the property has four or fewer residential units and the commercial space occupies less than 25% to 30% of the total square footage, some residential lenders will finance the purchase. However, properties with a larger commercial component or more than four units require commercial financing, including DSCR or conventional commercial loan structures.

How does DART rail proximity affect my loan approval?

DART proximity generally strengthens your loan application. Lenders recognize that transit-oriented mixed-use properties command higher rents, experience lower vacancy, and attract stronger tenants. Properties within Dallas' TOD TIF District may qualify for tax increment financing and reduced parking requirements, which lower construction costs and improve loan-to-cost ratios. Lenders experienced with DFW mixed-use projects factor these advantages into their underwriting.

What DSCR do lenders require for Dallas mixed-use properties?

Most lenders require a debt service coverage ratio between 1.20x and 1.25x for stabilized mixed-use properties in Dallas. Properties with strong commercial tenants, high residential occupancy, and DART proximity may qualify at the lower end of this range. Properties with shorter commercial leases, higher vacancy, or locations in oversupplied submarkets may face requirements of 1.25x to 1.30x. Texas' high property taxes make achieving strong DSCR ratios more challenging, so careful expense modeling is critical.

How do Dallas mixed-use loans compare to other Texas markets?

Dallas generally offers the strongest mixed-use lending environment in Texas due to its diversified economy, corporate headquarters density, and DART rail infrastructure. Houston offers comparable population growth but lacks the light rail TOD framework. Austin has similar demand drivers but faces more acute oversupply concerns and higher entry prices. San Antonio offers lower entry points but a smaller economic base. Lenders view Dallas as the most institutional mixed-use market in Texas.

How long does it take to close a mixed-use loan in Dallas?

Timelines vary by loan type. Bridge loans can close in as little as 2 to 4 weeks. Conventional commercial mortgages typically take 45 to 75 days. SBA 504 loans require 60 to 120 days due to CDC involvement. Construction loans may take 60 to 90 days to close but require completed entitlements and zoning approvals. Texas' relatively efficient permitting process and business-friendly environment mean overall timelines from acquisition to stabilization tend to be shorter than coastal markets. Get in touch with our team to get started.