Fort Worth has surpassed one million residents and is now the 11th-largest city in the United States, fueled by $6.7 billion in new capital investment during fiscal year 2025. With billions in mixed-use developments reshaping West 7th, Clearfork, Sundance Square, and the Near Southside, the city offers one of the most dynamic investment environments in the Sun Belt. Securing the right mixed-use loans Fort Worth investors need requires understanding local market forces, neighborhood-specific opportunities, and the financing structures that work for properties blending residential, retail, and commercial space in a city defined by rapid growth and downtown revitalization.
Whether you are pursuing a ground-up project near West 7th, acquiring a retail-over-residential property at Clearfork, or repositioning a value-add asset in the Near Southside, this guide covers every financing angle specific to the Fort Worth mixed-use market.
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Why Is Fort Worth One of the Best Mixed-Use Investment Markets in 2026?
Fort Worth's growth story is backed by hard numbers that translate directly into mixed-use investment opportunity. Several factors set the city apart from competing Sun Belt metros:
Population has officially crossed one million. Fort Worth surpassed one million residents according to recent Census Bureau estimates, making it the fastest-growing large city in the United States by total population gain. Projections estimate another 400,000 residents by 2050, creating sustained long-term demand for both housing and the retail, dining, and office space that mixed-use projects deliver.
Capital investment is at historic levels. Fort Worth had its strongest economic development year in more than a decade during fiscal year 2025, landing $6.7 billion in new capital investment and more than 6,900 new and retained jobs. Major wins include Siemens' $190 million manufacturing facility and two Wistron AI chip plants valued at $687 million.
The development pipeline is massive. Fort Worth currently has 98 projects in its development pipeline. The $1.7 billion Westside Village project on University Drive will deliver 880,000 square feet of office, 238,000 square feet of retail, 1,785 apartment units, and a 175-key hotel across 37 acres. Phase I broke ground in early 2026.
Downtown revitalization is accelerating. The eight-story Van Zandt project at West 7th and Foch streets and Goldenrod Companies' $400 million development plans are transforming the urban core. Over 750,000 square feet of office developments are under construction or proposed, and more than 20 large tenants are circling the market.
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 location, and borrower strength. Multifamily cap rates for Class A properties in Fort Worth's premium submarkets trade at 5.0% to 5.5%, while value-add opportunities yield 5.8% to 6.5%.
What Loan Types Work Best for Fort Worth Mixed-Use Properties?
Mixed-use properties combine residential and commercial uses under one roof or across a connected campus, making them more complex to finance than single-use buildings. The right loan structure depends on the property's residential-to-commercial ratio, its location within Fort Worth, 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 Fort Worth range from 5.5% to 7.0% with 65% to 75% LTV. These loans work well for investors acquiring stabilized mixed-use assets in established corridors like West 7th, Clearfork, or Sundance Square.
SBA 504 Loans are designed 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 Fort Worth entrepreneurs who want to own their mixed-use building. This structure is especially common in the Near Southside.
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 (12 to 36 months) to renovate and lease up value-add mixed-use buildings in transitioning neighborhoods like the Near Southside, South Main, or the Evans and Rosedale corridor.
DSCR Loans qualify borrowers based on the property's debt service coverage ratio rather than personal income verification. Fort Worth mixed-use properties with strong rental income can qualify with DSCR ratios as low as 1.20x, making these loans attractive for investors with complex personal financial situations.
Construction-to-Permanent Loans finance ground-up mixed-use developments from construction through stabilization in a single close. These are increasingly common for new projects along West 7th and University Drive.
Value-Add Financing combines acquisition and renovation capital for investors repositioning older properties. Learn more about value-add strategies for Fort Worth's evolving mixed-use landscape.
How Do Fort Worth's Key Neighborhoods Shape Mixed-Use Financing?
Fort Worth offers distinct mixed-use investment submarkets, each with unique financing considerations. Understanding these neighborhoods is critical for both borrowers and lenders evaluating mixed-use loans Fort Worth deals.
West 7th District The West 7th corridor between downtown and the Cultural District has become Fort Worth's premier live-work-play destination. The eight-story Van Zandt project at West 7th and Foch streets is among the most anticipated new developments. Goldenrod Companies has planned $400 million in projects for the area. Mixed-use properties here command the highest residential rents in the city, and lenders recognize the submarket's proven performance with favorable terms. Cap rates range from 4.8% to 5.5%, and stabilized properties can achieve LTVs of 70% to 75%.
Clearfork The luxury Clearfork development spans 270 acres along the Clear Fork of the Trinity River, with its first phase complete and thousands of additional residential units, two million square feet of office, hotels, and more retail planned for future phases. This master-planned environment attracts institutional capital and offers some of the most competitive financing terms in the Fort Worth market due to strong credit tenancy and high-income demographics.
Sundance Square and Downtown Sundance Square has been the heart of downtown Fort Worth since 1979, combining shopping, residential, and entertainment across 35 blocks. The Bass family's continued investment and the broader downtown revitalization create a stable, low-vacancy environment. Lenders favor mixed-use properties in this submarket because of established foot traffic, tourism, and proximity to the Fort Worth Convention Center. Cap rates range from 5.0% to 5.8%.
Near Southside The Near Southside has transformed through a form-based development code adopted in 2008 that promotes urban, pedestrian-oriented, mixed-use development. The Vickery, a five-acre mixed-use development at Vickery Boulevard and Hemphill Street, is delivering 307 residential units and 14 townhomes. The $63 million Evans and Rosedale corridor redevelopment will bring housing, retail, and a grocery store to the area. Near Southside offers lower entry points than West 7th or Clearfork, making it attractive for value-add investors using bridge financing. Cap rates range from 5.5% to 6.5%.
Westside Village / University Drive The $1.7 billion Westside Village project on University Drive represents the largest single mixed-use development in Fort Worth's history. The 37-acre site along the West Fork of the Trinity River will ultimately include office, retail, apartments, and a hotel. The city approved tax incentives for the project in 2025, and Phase I construction began in early 2026. Properties near this development will benefit from the halo effect as the project delivers.
What Are Current Mixed-Use Loan Rates and Terms in Fort Worth?
Loan rates for mixed-use properties in Fort Worth vary based on property type, leverage, borrower strength, and market conditions. As of early 2026, here is a snapshot of typical terms available to qualified borrowers:
With rates in the 5.5% to 7.0% range for stabilized properties, cash flow analysis is essential. Borrowers should run projections using our commercial mortgage calculator to verify positive leverage on their Fort Worth mixed-use investment.
Lenders pay close attention to the residential-to-commercial ratio. Properties with 70% or more residential use generally qualify for more favorable terms. The ideal ratio for most Fort Worth mixed-use buildings falls between 65% and 80% residential, with ground-floor retail or office making up the balance.
Texas has no state income tax, a significant advantage for investors. However, Tarrant County property taxes average 2.0% to 2.3% of assessed value. Lenders build these tax costs into their underwriting. High property taxes are partially offset by strong rental demand and a lower cost of living compared to coastal metros.
How Should You Underwrite a Mixed-Use Property in Fort Worth?
Underwriting a mixed-use property in Fort Worth requires evaluating both the residential and commercial components separately, then combining them into a blended analysis. Lenders focus on several key metrics that are shaped by local market conditions.
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 underwrite to a projected DSCR upon stabilization. Properties in high-demand submarkets like West 7th and Clearfork may qualify at the lower end of this range.
Vacancy Assumptions: Lenders typically assume 5% to 7% vacancy for residential units and 10% to 15% for commercial space in Fort Worth. Occupancy rates in Class A mixed-use properties near West 7th and Clearfork consistently outperform these assumptions, but lenders maintain conservative underwriting standards.
Expense Ratios: Fort Worth mixed-use properties carry operating expenses ranging from 35% to 45% of effective gross income. Tarrant County property taxes (2.0% to 2.3%) are the primary expense driver. Insurance costs have risen due to hail and severe weather exposure across North Texas, averaging $1,100 to $1,700 per residential unit annually.
Commercial Tenant Quality: Ground-floor tenants with national credit profiles strengthen underwriting significantly. Lenders prefer leases with at least 5 years remaining and annual rent escalations of 2% to 3%. Fort Worth's growing restaurant and retail scene at West 7th and Sundance Square creates strong demand for commercial ground-floor space.
Fort Worth-Specific Considerations: No rent control gives investors full flexibility on residential rents. No state income tax improves returns. Fort Worth's lower land costs compared to Dallas (typically 20% to 30% less) improve construction loan-to-cost ratios for ground-up developments.
What Are the Biggest Risks for Mixed-Use Projects in Fort Worth?
Every market presents risk factors that lenders and investors must evaluate carefully. Fort Worth mixed-use projects face several specific challenges that affect financing decisions.
Supply pipeline concentration. The sheer volume of planned mixed-use development, including the $1.7 billion Westside Village, multiple West 7th projects, and continued Clearfork expansion, could create absorption pressure in certain submarkets. Lenders may require higher pre-leasing thresholds for construction loans in areas with heavy pipeline activity.
Severe weather and insurance costs. North Texas experiences hailstorms and tornadoes that have driven commercial insurance premiums higher. Mixed-use buildings with glass facades and rooftop amenities face elevated costs. Budget $1,100 to $1,700 per residential unit for insurance, with commercial components priced separately.
Property tax burden. Tarrant County property tax rates of 2.0% to 2.3% are among the highest in the nation. For a $15 million mixed-use property, annual property taxes of $300,000 to $345,000 create a meaningful drag on cash flow and debt service coverage. Lenders underwrite to these elevated costs, so borrowers must ensure their revenue projections can support the tax load.
Interest rate sensitivity. With commercial mortgage rates ranging from 5.5% to 7.5%, even 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.
Dallas competition for tenants and capital. Fort Worth competes directly with Dallas for commercial tenants and investor capital. While Fort Worth offers lower land costs and a distinct identity, some national tenants default to Dallas submarkets. Mixed-use developers must offer competitive amenity packages to attract tenants.
What Steps Should You Follow to Finance a Fort Worth Mixed-Use Property?
Financing a mixed-use property in Fort Worth requires careful preparation and a strategic approach tailored to the local market. Follow this process to position your project for the strongest possible terms.
Step 1: Evaluate Location and Zoning. Before making an offer, confirm the property's zoning supports your intended mixed-use program. Fort Worth's form-based development codes in the Near Southside, West 7th overlay district, and other urban neighborhoods may allow greater density and reduced parking requirements. Check whether the property falls within a Tax Increment Financing (TIF) district or qualifies for other city incentives.
Step 2: Build Your Pro Forma. Assemble a detailed development budget and operating pro forma that accounts for Fort Worth-specific costs: Tarrant County property taxes at 2.0% to 2.3%, elevated insurance for hail and severe weather, commercial tenant improvement allowances, and seasonal retail traffic variations. Use the commercial mortgage calculator to test multiple financing scenarios and identify break-even points.
Step 3: Select the Right Loan Product. Match your financing to your investment strategy. Stabilized acquisitions in West 7th or Clearfork may work best with conventional commercial mortgages or DSCR loans. Owner-occupied properties benefit from SBA 504 financing. Value-add projects in the Near Southside or South Main require bridge loans before transitioning to permanent financing. Ground-up developments at sites like Westside Village need construction-to-permanent loans.
Step 4: Prepare Your Loan Package. Lenders will require a loan application, personal financial statements, appraisal, environmental Phase I, rent rolls, lease abstracts, historical operating statements, and a development budget with construction timeline (for new construction).
Step 5: Secure Approvals and Close. Work with a lender experienced in Fort Worth mixed-use financing who understands local zoning overlays and market dynamics. An experienced lender can identify structural advantages like TIF district eligibility that improve deal economics.
Contact our team today to discuss your Fort Worth mixed-use financing needs. We specialize in structuring loans for mixed-use developments across the DFW metroplex.
What Trends Will Shape Fort Worth Mixed-Use Lending Through 2026 and Beyond?
The Fort Worth mixed-use market is evolving rapidly as the city grows into its new status as a million-resident metropolis. Several trends will influence financing strategies through 2026 and into the years ahead.
Trinity River corridor development is unlocking new sites. The Panther Island project and broader Trinity River Vision are creating developable land adjacent to downtown. Westside Village's riverfront location signals investor confidence in this corridor.
Near Southside is emerging as a value-add hotspot. The $63 million Evans and Rosedale redevelopment and The Vickery's 307 units are making the Near Southside Fort Worth's most active value-add submarket. Investors using bridge financing and value-add strategies can acquire at lower basis points than West 7th or Clearfork.
Corporate relocations and job growth sustain demand. Siemens, Wistron, and other employers are adding thousands of jobs that require housing and services. Over $2 billion in capital investment within two years provides a strong foundation for continued mixed-use demand.
Suburban mixed-use is expanding south and west. New projects in southwest Fort Worth and along the I-35W corridor are responding to residential growth. Lenders are growing more comfortable financing suburban mixed-use as Clearfork has proven the model.
Sustainability is influencing lending. Developers are incorporating energy-efficient technologies and green building certifications into Fort Worth mixed-use projects. Some lenders offer rate reductions for properties meeting sustainability benchmarks.
For more on commercial lending opportunities across the DFW metroplex, explore our Fort Worth commercial loans page or reach out to our team to discuss your specific mixed-use financing needs.
Frequently Asked Questions About Mixed-Use Loans in Fort Worth
What is the minimum down payment for a mixed-use property loan in Fort Worth?
Conventional commercial loans typically require 25% to 35% down (65% to 75% LTV). SBA 504 loans can go as high as 90% LTV for owner-occupied properties. Bridge loans range from 20% to 35% down depending on risk profile. Properties in West 7th or Clearfork often qualify for higher leverage due to proven rental demand.
Can I use a residential loan for a mixed-use property in Fort Worth?
If the property has four or fewer residential units and commercial space occupies less than 25% to 30% of total square footage, some residential lenders will finance the purchase. Properties with a larger commercial component or more than four units require commercial financing. Most Fort Worth mixed-use properties in West 7th and Sundance Square exceed these thresholds.
How does Fort Worth compare to Dallas for mixed-use investment?
Fort Worth offers land costs typically 20% to 30% lower than Dallas, a more straightforward permitting environment, and early-mover opportunities in a city that just crossed one million residents. Dallas offers a larger mixed-use market with DART light rail and deeper institutional capital pools. Both cities benefit from no state income tax and strong job growth. Many investors pursue opportunities in both markets.
What DSCR do lenders require for Fort Worth mixed-use properties?
Most lenders require a DSCR between 1.20x and 1.25x for stabilized mixed-use properties. Properties in West 7th, Clearfork, or Sundance Square may qualify at the lower end. Properties with shorter leases or emerging locations may face requirements of 1.25x to 1.30x. Tarrant County's high property taxes make achieving strong DSCR ratios more challenging, so careful expense modeling is critical.
How long does it take to close a mixed-use loan in Fort Worth?
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. Construction loans may take 60 to 90 days to close but require completed entitlements and zoning approvals before the process begins. Fort Worth's relatively efficient permitting and inspection processes mean overall timelines from acquisition to stabilization tend to be shorter than coastal markets. Get in touch with our team to start the process.
Are there tax incentives for mixed-use development in Fort Worth?
Yes. Fort Worth offers Tax Increment Financing (TIF) districts that redirect incremental property tax revenue to fund infrastructure. The city approved tax incentives for the $1.7 billion Westside Village project in 2025, and similar programs may be available for qualifying developments. The Near Southside's form-based code encourages mixed-use investment with streamlined approvals and density bonuses. Your lender should factor these incentives into underwriting.