By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions
A $25 million build-to-rent (BTR) construction loan in Texas is the canonical institutional BTR transaction, financing 100 to 200 units of horizontal multifamily across Sun Belt growth markets including Austin, San Antonio, Dallas-Fort Worth, Houston, and the broader Texas Triangle. Most $25M BTR construction loans fund through specialty bridge debt funds at 70 to 75 percent LTC, often paired with an agency forward commitment that locks in permanent take-out at construction start.
Get a Quote on Your $25M Deal →$25M Texas BTR construction stacks combine senior construction debt at 70 to 75 percent LTC with institutional equity. Many sponsors layer in an agency forward commitment to eliminate refinance rate risk on the permanent take-out at stabilization.
Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.
Typical $25M Texas BTR construction sponsors are vertically integrated BTR operators with 2 to 10 completed BTR communities under management. Sponsor net worth $15M to $200M. The capital structure typically includes $25M of construction debt at 70 to 75 percent LTC, $10M to $14M of common equity from an institutional BTR equity partner (Pretium, BlackRock, AHV, others), and $1M to $3M of sponsor co-invest. Construction takes 18 to 24 months; lease-up to stabilization takes another 12 to 24 months.
On a 168-unit BTR townhome construction in a Texas Sun Belt suburb, the sponsor was a vertically integrated BTR operator with 4 completed communities. The capital structure included $32M of construction debt at SOFR + 475 (9.35 percent all-in at the time), $14M of common equity from an institutional BTR equity partner, and $2M of sponsor co-invest. The construction lender required a Fannie Mae forward commitment locking the permanent take-out at 5.85 percent fixed 10-year for delivery at month 24. Construction completed in 22 months. Lease-up reached 90 percent occupancy at month 39. The Fannie permanent funded at month 41, refinancing the construction debt and returning approximately $8M of capital to the equity partners.
Anonymized. All deal references protect borrower and lender identity.
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