Jaken Finance Group reviews DFW industrial investment-property loans from $2 million to $10 million. The commercial file should show tenant rent, operating costs, property condition, sponsor funds, and a credible exit. Request an industrial loan review for a non-owner-occupied warehouse, light-industrial building, or rental industrial property.
In one sentence: a larger DFW industrial loan is supported by what the tenants actually pay, what the owner must spend, and how the debt will be repaid.
| Loan request | Main question | Where to start |
|---|---|---|
| Under $2 million | Does a smaller building support its costs and debt? | Under-$2-million commercial financing |
| $2 million–$5 million | Is income stable, or does the property need repairs and leasing? | Commercial bridge or permanent financing review |
| $5 million–$10 million | Can the sponsor manage tenant exposure, capital work, and the exit? | Commercial loan request with full property and sponsor records |
The investment-property loans from $2 million to $10 million guide describes the national band. Industrial underwriting needs an additional level of lease detail: the label on the lease does not establish the owner’s net income.
Define the real estate and each tenant’s use
Begin with the building address, legal parcels, bay plan, and actual uses. List the area leased to each tenant and any yard, parking, office, or storage rights. Check that the lease description agrees with the physical plan. A mismatch can affect both income and collateral review.
Document the features that make the space usable. Power, access, loading, doors, clear height, drainage, and fire protection can matter to the tenant’s business. Have qualified professionals check the features on which the leasing plan relies. A proposed use can require more work than a clean vacant bay suggests.
DFW covers multiple jurisdictions. Confirm the municipality responsible for the particular site before assuming a Dallas procedure applies. The City of Dallas certificate-of-occupancy guidance identifies use and tenant changes as matters requiring review. Check the actual approval status for the proposed tenant and work.
These checks belong in the loan timeline because the building cannot earn the forecast rent merely by having a signed lease. A tenant may still need improvements or approvals before its payment duty starts. Show those conditions and who pays to satisfy them.
The Texas commercial lending guide addresses the wider product choices. The DFW small-bay industrial bridge guide walks through repair funding, tenant costs, and the later payoff.
Rebuild NOI from leases and receipts
Use a tenant roll with lease start and end dates, rent steps, concessions, deposits, renewal options, and termination rights. Show related tenants together. Several bays leased to businesses under common ownership can create one economic exposure even when the rent roll lists different names.
A T-12 is the trailing twelve-month operating statement. Match its rent and reimbursements with tenant ledgers and bank receipts. Separate unpaid charges from money collected. A reimbursement billed to a tenant does not help pay the mortgage until it is received.
A triple-net label does not remove every cost. Read responsibility for the roof, structure, paving, equipment, insurance, taxes, and common areas. Check caps and exclusions. During vacancy, a larger share of those costs may fall on the owner.
Net operating income, or NOI, is effective property income less operating costs. If reimbursements are included in income, retain the corresponding expenses consistently. Do not add the reimbursement while also deleting the expense it covers. That would overstate the cash available for debt.
Decide what the bridge must accomplish
A bridge may fit a purchase that needs repairs, tenant improvements, or a defined leasing period. Prepare a task list with cost, timing, responsible party, and evidence of completion. The exit lender should be able to see how each task improves the property’s eligibility.
Published bridge pricing is 8.99%–13.5% interest-only. Published DSCR pricing is 5.75%–10.5%. Commercial industrial terms, leverage, reserves, and coverage are quoted for the specific file. Do not import a residential purchase-leverage headline into an industrial loan model.
The published apartment value-add guidance is about 65%–75% of value; an industrial property needs its own review. The illustration below uses a 75% purchase advance as an explicit assumption. It is not an industrial approval rule or a promise to fund every repair.
Illustration: a $9.6 million industrial acquisition loan
This is a hypothetical DFW investment, not a funded file, appraisal, lease comparable, or market forecast. Assume an existing industrial rental property costs $12.8 million and has an assumed as-is value of $12.8 million. At an assumed 75% leverage, the acquisition loan is $9.6 million.
Assume the entire loan is advanced for the purchase. Repairs and tenant costs are funded separately by the sponsor. The proposed work therefore does not create a second hidden advance above the requested loan. Any later change to that structure requires a fresh funding schedule.
| Assumed purchase and work uses | Amount |
|---|---|
| Purchase price and as-is value | $12,800,000 |
| Acquisition loan: $12,800,000 × 75% | ($9,600,000) |
| Purchase equity | $3,200,000 |
| Building repair budget | $500,000 |
| Tenant improvements and leasing costs | $300,000 |
| Acquisition closing and report costs | $200,000 |
| Sponsor cash before interest allowance | $4,200,000 |
| Assumed bridge rate | 11% interest-only |
| Three-month gross interest allowance | $264,000 |
| Initial sponsor cash plan | $4,464,000 |
Annual interest is $9,600,000 × 11% = $1,056,000. Monthly interest is $88,000. Three months equals $264,000. This allowance assumes the balance is fully funded and gives no credit for operating receipts. It is a planning choice, not a published reserve requirement.
Assume current annual effective income, including collected reimbursements, is $1.7 million. Current operating costs are $680,000, including the expenses those reimbursements cover. NOI is $1.02 million, which falls $36,000 short of annual bridge interest before replacement reserves.
That shortfall alone does not describe the full cash need. Repairs and tenant improvements may be paid before new tenants begin paying rent. The sponsor must model monthly receipts and spending, then increase available cash if the assumed allowance proves insufficient.
Model a permanent refinance without hiding the costs
Assume completed work and new leases produce $1.9 million of annual effective income, including collected reimbursements. Assume operating costs of $740,000. Stable NOI is $1.16 million. After an assumed $40,000 annual replacement-reserve deduction, accepted cash flow for this exercise is $1.12 million.
None of those figures is a DFW market estimate. The lender would need to accept the leases, collection history, expense treatment, and reserve calculation. A sponsor’s operating forecast is not evidence that those results have already occurred.
For the exit calculation, assume an 8% interest rate, 25-year amortization, monthly payments, and a 1.25 coverage test. Monthly payment equals principal × r ÷ [1 − (1 + r)⁻ⁿ], where r = 0.08 ÷ 12 and n = 300.
Multiplying by twelve yields an annual payment factor of approximately 0.092617946. On $9.6 million, annual payments are approximately $889,132, or $74,094 monthly. Coverage is $1,120,000 ÷ $889,132 = approximately 1.26. The modeled loan narrowly clears the assumed coverage requirement.
Also assume a completed appraisal of $14 million and a 70% exit value limit. That supports $9.8 million by value. The coverage limit is $1,120,000 ÷ 1.25 ÷ 0.092617946 = approximately $9,674,151. Coverage is tighter than value, and both remain below the published ceiling.
If the sponsor chooses a $9.6 million refinance against a $9.6 million principal payoff, assume another $150,000 in exit costs. The sponsor must bring that $150,000. Even the larger modeled coverage limit would leave about $75,849 of those costs unfunded.
Stress the tenant that matters most
Now assume a tenant loss and unrecovered expenses reduce accepted annual cash flow by $180,000, to $940,000. Keep the exit rate, amortization, coverage test, and value unchanged solely to isolate the income effect. The loss is a hypothetical stress input.
Supported debt becomes $940,000 ÷ 1.25 ÷ 0.092617946 = approximately $8,119,377. Against the assumed $9.6 million payoff, the principal gap is approximately $1,480,623. Add the assumed $150,000 exit costs, and the sponsor needs approximately $1,630,623.
In practice, the same tenant problem might also reduce appraised value or require new improvements. Those effects are excluded from this single-variable calculation. Model them separately before relying on additional time or a new tenant to solve the gap.
Read expiration dates together instead of one lease at a time. Ask what happens if related tenants leave together or several renewals fall in the same period. A useful reserve plan covers the period between a tenant departure and the replacement tenant’s first normal payment.
Prepare the sponsor, property, and guaranty records
Send similar completed investments and explain the sponsor’s role in operations, capital work, and exits. Provide an entity chart, proof of available cash, and a schedule of other obligations. The larger commercial loan qualification guide explains how those records support review.
Include available environmental reports, past uses, repair assessments, and lease documentation. Let the lender identify needed follow-up and report scope. Do not assume a prior clean report answers every question about a new use or a changed property.
Recourse and carve-out guarantees are quoted per file. Use the commercial bridge guaranty guide to prepare the discussion with the lender and counsel. The industrial address, investment purpose, or loan size alone does not establish non-recourse terms.
Compare other assets without mixing their loan rules
A building occupied by the sponsor’s operating business needs an owner-user discussion. Working-capital and SBA facilities serve different purposes from this tenant-rental investment loan. State the actual use before comparing amounts or forms of security.
An apartment portfolio requires apartment records. The multifamily bridge guide and commercial apartment DSCR guide explain those paths. The private bridge, agency, and bank comparison discusses agency alternatives for apartments; do not assume that apartment eligibility applies to an industrial building.
If properties are combined, review portfolio refinancing for release clauses and cross-collateral risk. A later asset sale may require more principal repayment than expected. Model that sale before agreeing to a pooled note.
The Chicago multifamily illustration tests expense normalization, while the Atlanta multifamily illustration tests lease-up and concessions. Their assumptions help explain different underwriting problems; they do not establish industrial rents or values.
Luxury homes and specs use the jumbo hard money program, which can review qualified loans through $10 million. Larger luxury files receive individual leverage quotes; their residential sales or rental exits differ from industrial lease underwriting. The commercial real estate overview explains how rental industrial fits among the other investment-property choices.
Request a DFW industrial review
Provide the address, purchase contract or payoff, requested loan, closing target, tenant roll, leases, T-12, and reimbursement schedule. Add work bids, tenant-improvement obligations, occupancy records, sponsor cash, and a tested exit. Clearly label projected operations and unresolved property questions.
Submit the commercial industrial loan request or call (833) 264-7776. Ask for the usable purchase advance, total commitment, required sponsor cash, guaranty terms, and conditions that must be resolved before closing.