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

San Antonio is experiencing a mixed-use development boom unlike anything the city has seen before. From the $560 million Broadway East project adjacent to the Pearl District to the transformative Project Marvel anchored by a new Spurs arena at Hemisfair, billions of dollars are flowing into live-work-play developments across the Alamo City. For investors and developers looking to capitalize on this momentum, securing the right mixed-use financing is the critical first step.

This guide covers everything you need to know about mixed-use loans in San Antonio, including current rates, qualifying requirements, the best neighborhoods for investment, and how to structure your deal for maximum returns in 2026.

What Makes San Antonio Such a Strong Market for Mixed-Use Development?

San Antonio's fundamentals tell a compelling story for mixed-use investors. The metro area population reached 2.53 million in 2025, growing at 1.36% annually, making it the nation's fourth fastest-growing major city. More than 121,000 out-of-state transplants have moved to the San Antonio-New Braunfels metro since 2020, drawn by affordability relative to Austin and Dallas, no state income tax, and a diversified economy anchored by military installations, healthcare, cybersecurity, and tourism.

The retail vacancy rate sits at just 4.3% as of Q3 2025, well below the national average, while average retail rents of $19.16 per square foot (NNN) offer healthy returns without the sticker shock of coastal markets. Office vacancy is higher at 17.9%, but Class A properties in prime corridors like Broadway and downtown are outperforming at roughly 16.8% vacancy with rents averaging $29.66 per square foot.

Payroll growth has been robust, with 6,100 jobs added in a single month (April 2025) at an annualized rate of 6.3%, led by construction, healthcare, and government sectors. This job creation fuels demand for both residential units and ground-floor retail and restaurant space, which is exactly what mixed-use properties deliver.

What Types of Mixed-Use Loans Are Available in San Antonio?

Mixed-use properties blend residential and commercial components under one roof, and lenders offer several financing paths depending on your project's stage and profile.

Conventional Commercial Mortgages work well for stabilized mixed-use buildings that are already generating income. These loans typically offer rates starting at 5.5% to 7.5%, terms up to 30 years, and loan-to-value ratios of 70% to 75%. They require a track record of occupancy, usually 85% or higher, and a debt service coverage ratio (DSCR) of at least 1.25x.

SBA 504 Loans are excellent for owner-occupied mixed-use properties where the borrower's business occupies at least 51% of the space. These loans offer below-market fixed rates, up to 90% financing, and terms of 20 to 25 years. For a San Antonio entrepreneur opening a restaurant or professional office with apartments above, the SBA 504 program can be the most cost-effective route.

Bridge Loans fill the gap for acquisitions that need repositioning or lease-up before qualifying for permanent financing. If you are acquiring a partially vacant mixed-use building in Southtown that needs renovation, a bridge loan provides 12 to 36 months of flexible financing at 7.5% to 10.5% while you stabilize the asset. These are also ideal for adaptive reuse projects converting historic San Antonio buildings into modern mixed-use spaces.

Construction Loans fund ground-up mixed-use development, typically at 7% to 9% interest with 60% to 70% loan-to-cost ratios. Given the volume of new construction along the Broadway corridor and at Brooks, these loans are in high demand from San Antonio developers.

Value-Add Financing targets investors acquiring mixed-use properties with below-market rents or deferred maintenance. A value-add strategy might involve renovating outdated units, improving common areas, or re-tenanting ground-floor retail to boost net operating income before refinancing into a lower-rate permanent loan.

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

As of early 2026, mixed-use financing rates in San Antonio reflect the broader commercial lending environment. Rates have moderated from their 2023-2024 peaks, and economists anticipate further easing through mid-2026 as inflation stabilizes.

Several factors influence where your rate lands within these ranges. Properties in high-demand corridors like the Pearl District or downtown Hemisfair area may qualify for more aggressive terms due to stronger rental demand and lower perceived risk. Borrower experience matters significantly as well. A developer with a track record of successful mixed-use projects in San Antonio will typically secure rates 50 to 100 basis points lower than a first-time investor.

Use our commercial mortgage calculator to model different scenarios and see how rate variations affect your monthly payments and cash-on-cash returns.

Where Are the Best San Antonio Neighborhoods for Mixed-Use Investment?

San Antonio's mixed-use hotspots span from the urban core to emerging suburban nodes. Each area offers distinct advantages depending on your investment thesis.

The Pearl and Broadway Corridor remains the crown jewel. The Pearl District transformed a defunct brewery campus into San Antonio's premier mixed-use destination, and its success has ignited development up and down Broadway. The $560 million Broadway East project, backed by Fulcrum Development and GrayStreet Partners, is adding 170,000 square feet of retail and dining with up to 1,000 residential units and a hotel across 15 acres adjacent to the Pearl. Jefferson Bank's new 13-story, 486,210-square-foot headquarters at 1900 Broadway and the Encore Grayson project adding nearly 400 apartments to the Lower Broadway corridor demonstrate the depth of investment here. The $106 million Broadway Street infrastructure improvements funded through the 2017-2022 Bond Program have been the catalyst connecting these developments.

Southtown and Blue Star pioneered San Antonio's mixed-use concept long before it was trendy. The Blue Star Arts Complex, an adaptive reuse of abandoned industrial warehouses dating to 1985, became the city's first mixed-use development, combining art galleries, restaurants, an arthouse cinema, loft apartments, and retail shops along the San Antonio River. The adjacent Lone Star District, a 32-acre adaptive reuse of the former Lone Star Brewery, represents the next wave of Southtown mixed-use development.

Downtown and Hemisfair are undergoing their most significant transformation in decades. The Hemisfair Civic Park Phase 2, which opened in March 2025, adds new public gathering spaces that enhance surrounding property values. The Monarch San Antonio hotel, a 17-story Hilton Curio Collection property opening in early 2026, brings 200 rooms and upscale amenities. Most significantly, Project Marvel, the proposed $1.2 to $1.5 billion mixed-use district anchored by a new Spurs arena, could begin construction in spring 2026 and reshape the entire southern downtown area. Weston Urban's Continental Block project is also adding 290 mixed-income residential units, a parking garage, and 22,000 square feet of commercial space through the renovation of historic 1890s and 1920s buildings.

Brooks has evolved from a former Air Force base into a $1.79 billion mixed-use community with an additional $328.6 million in development driving the next growth phase. Brooks is one of 24 Opportunity Zones in Bexar County, offering tax advantages for investors deploying unrealized capital gains. The combination of Opportunity Zone incentives and an established mixed-use framework makes Brooks particularly attractive for new investment.

Northwest San Antonio and Stone Oak represent the suburban mixed-use opportunity. The Merc, a new mixed-use development in northwest San Antonio, broke ground with Phase I openings scheduled for summer 2026. It will include dining and retail, apartments, green spaces, and a trailhead to Leon Creek Greenway. These suburban mixed-use projects tap into the significant population growth in San Antonio's northern corridors.

How Do You Qualify for a Mixed-Use Loan in San Antonio?

Lenders evaluate mixed-use loan applications through several lenses, and understanding these criteria helps you prepare a stronger application.

Debt Service Coverage Ratio (DSCR) is the primary metric. Most lenders require a minimum DSCR of 1.20x to 1.25x, meaning the property's net operating income must exceed the annual debt payments by at least 20% to 25%. For San Antonio mixed-use properties, achieving this ratio is generally feasible given the metro's low retail vacancy and strong residential demand.

Loan-to-Value (LTV) ratios for mixed-use properties typically cap at 70% to 75% for conventional loans, though SBA 504 loans can reach 90%. Your down payment requirement will depend on the loan type, property location, and your experience level.

Borrower Experience plays a meaningful role, especially for construction and bridge loans. Lenders want to see that you have successfully developed or managed similar properties. If you are new to mixed-use development, partnering with an experienced operator or property manager can strengthen your application.

Property Location and Tenant Mix directly affect underwriting. A mixed-use building on the River Walk with a diversified tenant roster and strong residential occupancy will underwrite more favorably than a similar property in an unproven submarket. Lenders also scrutinize the commercial-to-residential ratio, as different mixes affect risk profiles.

Financial Documentation requirements include two to three years of tax returns, a personal financial statement, a detailed rent roll, operating statements, and for new construction, a complete project pro forma with market comparables and construction budget.

What Is the Step-by-Step Process for Securing Mixed-Use Financing?

The mixed-use loan process involves several stages, and being prepared at each step accelerates your timeline to closing.

The entire process from initial application to closing typically takes 45 to 90 days for stabilized properties and 60 to 120 days for construction loans. Working with a lender experienced in San Antonio mixed-use deals can shave weeks off this timeline because they already understand the local market dynamics, zoning requirements, and appraisal comparables.

How Does San Antonio's Zoning Support Mixed-Use Development?

San Antonio has been proactive in creating zoning frameworks that encourage mixed-use development. The city's MXD (Mixed-Use District) zoning category permits any use subject to an approved zoning site plan, removing the regulatory barriers that slow development in other Texas cities.

The Transit-Oriented Development (TOD) zoning initiative further supports mixed-use by concentrating residential, commercial, and recreational uses around transit corridors. This is particularly relevant along the Broadway corridor, where infrastructure investments are designed to support higher-density, walkable development.

Bexar County's 24 Opportunity Zones add another layer of incentive. Properties in these designated census tracts, which include Brooks and portions of downtown and the East Side, offer investors the ability to defer and potentially reduce capital gains taxes. When combined with favorable mixed-use loan terms, Opportunity Zone benefits can materially improve project economics.

The city's Adaptive Reuse Ordinance also streamlines the permitting process for converting historic and industrial buildings into mixed-use properties. Given San Antonio's wealth of historic structures, from the Blue Star warehouses to the Continental Hotel, this policy creates a faster path to development for investors focused on renovation rather than ground-up construction.

What Should You Know About San Antonio's Mixed-Use Market Risks?

Every investment carries risk, and mixed-use properties in San Antonio are no exception. Here are the factors prudent investors should evaluate.

The office component of mixed-use buildings faces headwinds. With overall office vacancy at 17.9%, investors should be cautious about deals heavily weighted toward office space. Properties that emphasize residential units with ground-floor retail and restaurant tenants are generally performing better than those with significant office components.

Construction costs have risen significantly over the past three years. While San Antonio remains more affordable than Austin or Dallas for development, material and labor costs should be carefully budgeted with appropriate contingencies, typically 10% to 15% of hard costs.

Interest rate uncertainty remains a factor. While rates have come down from 2023-2024 peaks, they remain elevated compared to pre-2022 levels. Building in rate lock provisions and stress-testing your pro forma at higher rates provides a margin of safety.

Market concentration risk exists in some corridors. The volume of new mixed-use product coming online along Broadway and in northwest San Antonio could temporarily pressure rents and vacancy in those specific submarkets. Investors should underwrite conservatively and ensure their properties offer genuine differentiation in terms of amenities, design, or tenant mix.

What Makes the Pearl District a Case Study for Mixed-Use Success?

The Pearl District is arguably the most successful mixed-use redevelopment in Texas, and it offers lessons for investors across San Antonio. What began as the abandoned Pearl Brewery has become a 22-acre destination that seamlessly blends residential, retail, restaurant, office, hotel, and civic uses.

The Pearl's success rests on several principles that apply to any mixed-use investment. First, it prioritized a genuine mix of uses rather than treating one component as an afterthought. Second, it invested heavily in public spaces, walkability, and connectivity to the River Walk and surrounding neighborhoods. Third, it evolved organically over time, with each phase building on the momentum of the last.

The spillover effect has been transformative. Property values along the entire Broadway corridor have appreciated dramatically, the adjacent Tobin Hill and River North neighborhoods have seen significant new investment, and the district now generates substantial tax revenue for the city. For mixed-use investors, the Pearl demonstrates that when done well, these projects create value not just for the property itself but for the entire surrounding area.

This track record is precisely why lenders view well-located San Antonio mixed-use projects favorably. The Pearl provides the market proof that live-work-play development resonates with San Antonio's growing population.

Frequently Asked Questions About San Antonio Mixed-Use Loans

What is the minimum down payment for a mixed-use loan in San Antonio? Down payments typically range from 10% to 30% depending on the loan type. SBA 504 loans require as little as 10% for owner-occupied properties, while conventional commercial mortgages generally require 25% to 30%. Bridge loans and construction loans may require 30% to 40% equity, though experienced developers with strong track records can sometimes negotiate lower requirements.

Can I use a mixed-use loan for a property that combines retail, office, and residential? Yes. Mixed-use loans are specifically designed for properties that blend multiple use types. The key factor is the ratio of commercial to residential space, as this determines whether the property is underwritten as a commercial or residential asset. Most lenders consider a property "mixed-use" when at least 20% to 25% of the total space is dedicated to commercial uses.

Do San Antonio Opportunity Zones affect mixed-use loan terms? Opportunity Zone designation does not directly change loan terms, but it can improve your overall project economics through tax benefits. These improved economics can make your deal more attractive to lenders by demonstrating stronger after-tax returns to investors. Bexar County has 24 designated Opportunity Zones, including Brooks and portions of the downtown core.

How long does it take to close a mixed-use loan in San Antonio? Stabilized property acquisitions typically close in 45 to 60 days. Construction loans take 60 to 120 days due to additional underwriting requirements including feasibility studies, environmental reviews, and construction budget analysis. Bridge loans can close in as few as 21 to 30 days when speed is essential for a competitive acquisition.

What DSCR do I need for a San Antonio mixed-use property? Most lenders require a minimum debt service coverage ratio of 1.20x to 1.25x. However, properties in premium locations like the Pearl corridor or downtown may qualify with ratios as low as 1.15x from certain lenders. New construction projects are typically underwritten to a projected stabilized DSCR of 1.30x or higher.

Are historic tax credits available for San Antonio mixed-use adaptive reuse projects? Yes. Federal Historic Tax Credits provide a 20% tax credit for the qualified rehabilitation of certified historic structures. San Antonio has a significant inventory of eligible buildings, and the city's Adaptive Reuse Ordinance streamlines the approval process. These credits can be combined with Opportunity Zone benefits and New Markets Tax Credits for projects in qualifying areas, creating a powerful incentive stack that reduces effective project costs.

Ready to Finance Your San Antonio Mixed-Use Project?

San Antonio's mixed-use market offers a rare combination of strong population growth, diversified economic drivers, favorable zoning, and proven demand for live-work-play developments. Whether you are acquiring a stabilized asset along the River Walk, converting a historic Southtown warehouse, or building ground-up in one of the city's emerging corridors, the right financing structure makes all the difference.

Our team specializes in mixed-use loans across San Antonio and understands the nuances of this market, from Opportunity Zone structuring to adaptive reuse financing. We work with a broad network of lenders to find the best terms for your specific project.

Contact us today to discuss your San Antonio mixed-use investment and get a customized financing proposal. We will walk you through your options and help you move from concept to closing with confidence.