Commercial Real Estate Loans at Pinnacle Bank Texas

Owner-Occupied Commercial Mortgages

If your business occupies 51% or more of the property, an owner-occupied CRE loan typically offers the best rates and terms. Pinnacle Bank finances office buildings, medical and dental practices, retail storefronts, warehouses, manufacturing facilities, restaurants, and auto service centers where the borrower is also the primary tenant.

Owner-occupied loans qualify for up to 80% loan-to-value with terms of 5 to 25 years. Amortization schedules of 20-25 years keep monthly payments manageable, while shorter balloon terms (5, 7, or 10 years) give both parties flexibility to revisit pricing as market conditions change. Fixed and variable rate options are available, and many borrowers choose a hybrid structure with a fixed rate for the first 5-7 years followed by an annual variable adjustment.

For businesses that need higher leverage, Pinnacle Bank's SBA 504 loan program can finance up to 90% of the total project cost on owner-occupied commercial real estate, combining a conventional first mortgage with an SBA-guaranteed second lien. This structure reduces your required down payment from 20% to as little as 10%.

Investor Commercial Real Estate

Pinnacle Bank finances income-producing commercial properties including multi-family apartments (5+ units), retail strip centers, office buildings, medical office, industrial and flex space, and mixed-use developments. Investor CRE loans are underwritten based on the property's net operating income and debt service coverage ratio (DSCR), with borrower financial strength as a secondary consideration.

We require a minimum DSCR of 1.25x on stabilized properties, meaning net operating income must be at least 125% of the annual debt service. LTV caps at 75% for most investor property types, though well-located multi-family in strong Texas markets may qualify for up to 80% LTV based on occupancy history and rental comps. Your Pinnacle Bank CRE officer will evaluate the property's market position, tenant mix, lease terms, and capital expenditure needs as part of the underwriting process.

Construction Loans

Pinnacle Bank Texas construction loans finance ground-up development of commercial properties including offices, retail, industrial, multi-family, and mixed-use projects. Construction loans are structured as interest-only facilities during the build phase, with draws disbursed based on percentage of completion as verified by our third-party inspection team.

Construction loan terms typically run 12-24 months depending on project scope, with one extension option available for qualifying projects that encounter reasonable delays. Rates during construction are variable, generally priced at Prime + 1.00% to Prime + 2.00%. At project completion, the construction loan can convert to permanent financing through Pinnacle Bank — a one-close or two-close structure depending on your preference.

We finance up to 80% of total project cost (land + hard costs + soft costs) for projects where the borrower has relevant development experience and adequate liquidity reserves. First-time developers may qualify with additional equity contribution or a guarantor with development track record.

Land and Lot Development

Pinnacle Bank provides financing for raw land acquisition and lot development in Texas markets with demonstrated absorption demand. Land loans carry higher risk premiums — typically 65% maximum LTV with variable rates at Prime + 1.50% to Prime + 2.50% and terms of 1-3 years. Lot development loans finance the installation of infrastructure (streets, utilities, drainage) to convert raw acreage into buildable lots.

We evaluate land loans based on the borrower's development plan, market absorption data, entitlement status, and takeout strategy. Properties with existing zoning, plat approval, and utility access receive more favorable terms than speculative raw land acquisitions. Our CRE team works closely with borrowers during the entitlement and planning phase to ensure the financing structure aligns with the development timeline.

Regulatory guidance from the FDIC and OCC requires banks to maintain conservative concentration limits on construction and land development lending. Pinnacle Bank manages these concentrations carefully, which means we are selective about which projects we finance — but the projects we approve receive full commitment and responsive service through completion.

Local Market Knowledge Matters

Commercial real estate lending is inherently local. Cap rates in Dallas are different from cap rates in Midland. Construction costs in Austin have escalated at a different pace than in Amarillo. Tenant demand for industrial space in the Houston Ship Channel corridor has different drivers than retail space in suburban San Antonio.

Pinnacle Bank Texas CRE lenders operate in these markets daily. We review local appraisals, track absorption data, and maintain relationships with commercial brokers, title companies, and contractors across our footprint. When you present a deal, our team does not need a crash course on your market — they already understand it.

That local knowledge also means we can move faster on appraisals. We maintain an approved appraiser panel in every major Texas market, and our CRE team can often order and receive a completed commercial appraisal within 2-3 weeks rather than the 4-6 weeks common at national banks that route orders through centralized appraisal management companies.

Structuring Your CRE Financing

Not every commercial real estate transaction fits a standard template. Pinnacle Bank Texas CRE officers specialize in structuring financing that aligns with the specific characteristics of your deal. A medical practice purchasing its own office building has different needs than an investor acquiring a 200-unit apartment complex. A developer building a 50,000 SF industrial spec building has different risk parameters than a restaurant owner expanding into an adjacent suite.

We offer interest-only periods on stabilization loans to give income properties time to reach full occupancy. We structure construction-to-permanent loans that convert from a floating-rate construction facility to a fixed-rate permanent mortgage at completion, eliminating the need to refinance and pay closing costs twice. For borrowers with multiple properties, we can structure cross-collateralized facilities that leverage your existing equity to improve terms on new acquisitions.

Your Pinnacle Bank CRE relationship manager coordinates with our in-house loan operations team, approved appraisers, environmental consultants, and title companies to move your transaction from term sheet to closing efficiently. One point of contact, one bank, one closing table.