Question 1

Which McAllen-area commercial property types actually get bridge debt?

Accepted Answer

Industrial tied to the Pharr-Reynosa bridge, retail anchored by cross-border shopping, and medical or education-adjacent space around Edinburg. The Pharr-Reynosa International Bridge reports more than $41 billion in annual trade, the number 1 produce crossing in the nation, and over 120,000 commercial trucks a month, which is the demand story for industrial and logistics space around Pharr and Mission. McAllen's retail scale is real too: retail sales in the city were reported at $17.5 billion for 2023, and La Plaza Mall generates about $400 million a year with roughly 40% of visitors from Mexico, though a 2026 Dallas Fed piece suggests that cross-border retail share may be softening, so treat the retail story as durable but not guaranteed to keep accelerating. DHR Health in Edinburg employs more than 6,000 people and UTRGV opened fall 2025 with a record 35,812 students, which supports medical office and student-adjacent commercial space. We do not have local CRE vacancy, rent or cap rate figures for any of these categories, and we won't publish one we don't have; bring your own rent roll and comps. See the CRE bridge program for structure.

Question 2

Why would an investor bridge industrial space near the Anzalduas crossing instead of waiting?

Accepted Answer

Because the market moves on the crossing's schedule, not the calendar year. The Anzalduas International Bridge in Mission is completing an $88 million commercial cargo expansion adding six commercial lanes, and Mission's own economic development corporation projects roughly 1,500 trucks a day once it opens to freight. As of late September 2025 the federal cargo inspection facility was reported roughly two years behind schedule and unlikely to open before spring 2026, so treat that date as directional and reconfirm it before you underwrite a lease-up timeline against it. A bridge loan lets you control or reposition a site ahead of that opening rather than compete for it once freight traffic starts. We don't have Valley industrial vacancy or asking rent figures to size the lease-up against, so the deal has to stand on the tenant and the lease terms you bring us, not a market average.

Question 3

Is McAllen retail still a bridge-worthy asset class, given the cross-border story?

Accepted Answer

The history is real; the current direction isn't fully confirmed, so underwrite the tenant, not the headline. The city has said 35 to 37% of its sales tax revenue comes from Mexican shoppers, and La Plaza Mall's roughly 40% Mexico-origin visitor share and $400 million in annual sales back that up, but those figures are dated and self-reported. A 2026 Dallas Federal Reserve piece, "Mexican residents favor local retailers over cross-border shopping in Texas," suggests cross-border retail dependence may be softening; it could not be read in full for this research, so read it yourself before you size a retail pro forma on cross-border traffic. A bridge on a McAllen retail center is a reposition or re-tenanting story we fund on the merits of the lease, not a bet we'll make on a retail-dependence percentage we can't verify as current. Talk to us about the specific asset.

Question 4

Does the Valley's flood history change how a CRE bridge gets underwritten here?

Accepted Answer

Yes, on every parcel, and it's a flood question more than a wind question inland. Severe storms on June 24-25, 2019 dropped 12 to 18 inches of rain on the Valley, destroyed or seriously damaged nearly 1,200 homes, and triggered a federal major disaster declaration (DR-4454) for Cameron, Hidalgo and Willacy counties. The terrain is a flat river delta, so drainage is a permanent public expense, which is why Hidalgo County runs a county-wide drainage district levy on top of standard property tax. Check the FEMA flood zone on the parcel and price flood coverage separately before you set a stabilized expense line; don't assume a McAllen or Edinburg site is exempt because it's inland. Wind is a different line: Cameron and Willacy counties sit in the Texas Windstorm Insurance Association's coastal catastrophe territory and may need a TWIA policy, while Hidalgo County properties buy standard-market wind coverage.

Question 5

What does a McAllen-area property tax stack do to a bridge-to-stabilization pro forma?

Accepted Answer

It's a real line item, and it belongs at the parcel level rather than a metro average. A McAllen city property inside McAllen ISD stacks the county's TY2025 rates of 0.5750 and 0.1123 (drainage district) with the city at 0.4500 for FY 2024-25 and McAllen ISD at 0.9322 per $100 of taxable value, about 2.07 before the South Texas College levy, and a Pharr property in PSJA ISD runs closer to 2.47 before that same levy. Pull the South Texas College rate and the specific ISD rate for your parcel from the Hidalgo County Appraisal District before you finalize a year-one expense line. On a stabilized asset that's real drag on net operating income, and it's the kind of thing that shows up at refinance if it wasn't underwritten at acquisition. Talk to your CPA about the current-year rate before you commit to a takeout number.

Question 6

If I'm bridging a land purchase or assembly in Hidalgo County, what title issues actually show up?

Accepted Answer

Contract-for-deed history and unplatted lots, more than in most Texas markets. Hidalgo County is one of the state's most colonias-affected counties: unincorporated subdivisions historically sold as unplatted lots without water, sewer or drainage. The state's response is specific to this: Model Subdivision Rules under Water Code section 16.343, border-county platting requirements under Local Government Code chapter 232, and Property Code chapter 5 subchapter D's protections for executory contracts (contracts for deed) on residential property. Academic research on post-1990 subdivisions in Hidalgo County documents repeated repossession-and-resale cycles on seller-financed lots, so a chain of title can carry unrecorded or partially performed executory contracts even on land that looks straightforward. Before we bridge a Hidalgo County land or assembly deal: confirm the parcel is on a recorded plat, run title deep enough to surface any contract-for-deed chain, confirm actual water and sewer service rather than "available in the area," and check the FEMA flood zone. Start an application and we'll walk the diligence with you.

Question 7

What can a commercial bridge loan be used for?

Accepted Answer

Bridge capital is for repositioning or stabilizing a commercial property before permanent financing: value-add, lease-up, a partner buyout, or pulling equity out through a cash-out. We lend across property types on terms up to 24 to 36 months, with loans up to $10M.

Question 8

What rates, leverage, and terms should I expect?

Accepted Answer

Our commercial bridge pricing starts around 9%, interest-only, up to roughly 75% loan-to-value, on terms up to 24 to 36 months. Published bridge pricing generally runs 8% to 12% with 1 to 3 points. Final terms depend on the asset, the business plan, and sponsor strength.

Question 9

How fast can a commercial bridge loan close?

Accepted Answer

Commercial deals usually close in 2 to 4 weeks. They take a little longer than residential because of the appraisal, the rent roll and operating-statement review, and any third-party reports. We move as fast as the diligence allows and keep one point of contact on your file.

Question 10

Do I need positive cash flow (DSCR) to qualify?

Accepted Answer

Not necessarily at closing. Bridge loans are often underwritten interest-only to the as-stabilized business plan rather than a minimum in-place DSCR, since the property is being repositioned. We do want to see a credible path to stabilization and enough in-place income or reserves to carry the loan.

Question 11

What documents do you need for a commercial bridge request?

Accepted Answer

Typically the purchase contract or current debt, a rent roll and trailing-12-month operating statement, your business plan and renovation budget, and sponsor financials. Larger assets may also need a property condition report and an environmental review. We will give you a clear checklist up front.

Question 12

Is the loan recourse, and is cash-out available?

Accepted Answer

Most bridge loans are recourse with a personal guarantee, while lower-leverage non-recourse can be possible on stronger assets. Cash-out is available when there is equity to support it. We structure recourse and leverage around the specific deal.

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