Commercial Real Estate Loans in Indiana: 2025 Investor’s Guide
As Indiana’s commercial property market continues to evolve in 2025, investors are seeking innovative financing solutions to capitalize on opportunities in the Hoosier State. Whether you’re expanding a multifamily portfolio in Indianapolis, renovating a retail center in South Bend, or breaking ground on industrial space in Evansville, understanding the landscape of commercial real estate loans in Indiana is critical for your success.
- Commercial Real Estate Loans in Indiana: 2025 Investor’s Guide
- 2025 Indiana Commercial Real Estate Market Overview
- Spotlight: Multifamily Financing in Indiana (2025 Focus)
- Typical Indiana Multifamily Loan Terms in 2025
- Step-by-Step: Indiana Multifamily Loan Application Process (2025)
- Success Stories: Indiana Multifamily Financings (2025)
- Indiana Investor Pro Tips (2025)
- Why Indiana is a Top Multifamily Market in 2025
- Start Your Indiana CRE Loan Journey
2025 Indiana Commercial Real Estate Market Overview
The Indiana CRE market in 2025 is robust, with lower vacancy rates and persistent demand in logistics, healthcare, and multifamily sectors. Notable commercial districts include:
- Downtown Indianapolis: Prime for mixed-use redevelopment and office resiliency projects.
- Fishers Innovation District: Growing tech hub with surge in office and R&D space demand.
- Evansville Riverfront: Transformation with retail, hospitality, and multifamily projects.
- South Bend’s Eddy Street Corridor: Student housing and medical-related investments near Notre Dame.
- Carmel Arts & Design District: Active hospitality and specialty retail market.
- Fort Wayne North Side: Rapidly expanding healthcare and warehouse submarket.
- Jeffersonville River Ridge Commerce Center: Emerging as a logistics/industrial epicenter.
These localities present income-generating opportunities for savvy CRE investors in 2025, with each offering unique financing and growth dynamics.
Need capital? GHC Funding offers flexible funding solutions to support your business growth or real estate projects. Discover fast, reliable financing options today!
⚡ Key Flexible Funding Options:
GHC Funding everages financing types that prioritize asset value and cash flow over lengthy financial history checks:
DSCR Rental Loan
- No tax returns required
- Qualify using rental income (DSCR-based)
- Fast closings ~3–4 weeks
SBA 7(a) Loan
- Lower down payments vs banks
- Long amortization improves cash flow
- Good if your business occupies 51%+
Bridge Loan
- Close quickly — move on opportunities
- Flexible underwriting
- Great for value-add or transitional assets
SBA 504 Loan
- Low fixed rates through CDC portion
- Great for construction, expansion, fixed assets
- Often lower down payment than bank loans
🌐 Learn More
For details on GHC Funding's specific products and to start an application, please visit our homepage:
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Spotlight: Multifamily Financing in Indiana (2025 Focus)
This guide focuses on multifamily financing, as 2025 continues Indiana’s trend of population growth, urbanization, and increased rental demand. Lenders are tailoring loan products for acquisitions, refinances, and value-add repositionings in Indiana’s resilient multifamily markets.
Core Multifamily Loan Types
- Permanent Mortgages: Long-term (5-30 year), fixed or floating rate loans for stabilized assets.
- Agency Loans (Freddie Mac & Fannie Mae): Attractive rates for qualifying properties; popular in Indianapolis, South Bend, and Evansville.
- Bridge Loans: Short-term, interest-only loans ideal for acquisition/rehab or lease-up situations.
- Construction Loans: Customized for ground-up or substantial renovation of multifamily developments.
- CMBS Loans: Securitized financing for larger properties with competitive terms for experienced sponsors.
Key Indiana Multifamily Lenders (2025)
- Old National Bank: The largest Indiana-based lender, with flexible multifamily and mixed-use programs statewide.
- Peoples Bank (Munster): In-market expertise for small- to mid-sized multifamily deals in Northwest Indiana and the Indianapolis region.
- German American Bank: Preferred lender for multifamily bridge and construction loans in southern Indiana (Evansville/New Albany).
- First Merchants Bank: Active statewide; specializes in Freddie Mac SBL and Fannie Mae DUS loans for stabilized and value-add properties.
- Merchants Capital: Indianapolis-headquartered; national multifamily platform with deep roots in affordable and workforce housing.
- KeyBank Real Estate Capital: Top national agency lender with multiple Indiana multifamily closings in 2024-2025.
Typical Indiana Multifamily Loan Terms in 2025
- Loan Amounts: $500,000 – $50,000,000+ (most common: $1M – $10M)
- Loan-to-Value (LTV): Up to 75–80% for stabilized properties
- Interest Rates: 6.25% – 7.15% (fixed or floating, as of Q2 2025)
- Terms: 5, 7, 10, up to 30 years (amortizations up to 30 years)
- Recourse: Both recourse and non-recourse structures available (based on deal/profile)
- Prepayment: Yield maintenance, step-down, or flexible prepay for agency programs
Step-by-Step: Indiana Multifamily Loan Application Process (2025)
- Initial Consultation: Schedule a call or meeting with your chosen lender to discuss project scope, property info, and financial goals.
- Preliminary Submission: Provide a loan summary, property rent roll, trailing 12-month financials, and borrower bios.
- Term Sheet Issuance: Receive indicative loan terms based on initial underwriting. Review and sign to proceed.
- Formal Application: Submit comprehensive docs: purchase agreement, surveys, Phase I ESA, organizational docs, borrower financials.
- Third Party Reports: Lender orders appraisal, environmental, and property condition reports. (Allow 2–3 weeks.)
- Underwriting & Credit Approval: Lender reviews all documents, approves the deal, and issues a final commitment letter.
- Closing & Funding: Coordinate with title company, satisfy closing checklist. Loan is funded; new financing recorded.
Success Stories: Indiana Multifamily Financings (2025)
- Indianapolis, Broad Ripple Neighborhood: $2.8M Freddie Mac SBL loan on a 24-unit mid-rise. Borrower secured a 7-year fixed rate at 6.40%, 80% LTV, interest-only for 2 years, recourse carveouts. Value-add renovation strategy projected a 12% IRR.
- Bloomington Student Housing: $5.1M construction-to-perm loan from Old National Bank for a new 40-unit project serving Indiana University. 75% LTC, 24-month interest-only during construction, rolling to 25-year amortization.
- Evansville Riverfront Rehab: $950,000 bridge loan from German American Bank to reposition a 16-unit building. 18-month term, interest-only, closed in under 30 days, facilitating lease-up and permit finalization.
- South Bend: $3.7M Fannie Mae DUS acquisition loan for a stabilized 36-unit complex. 10-year term, non-recourse, 6.85% fixed, 30-year amortization, DSCR 1.30x.
Indiana Investor Pro Tips (2025)
- Know Your Submarket: Lenders will expect a compelling local story and strong management track record—especially in competitive areas like Fishers, Carmel, and Fort Wayne.
- Leverage Lender Incentives: Look for “green rewards” and reduced rates on energy-efficient or affordable housing projects via agency programs.
- Be Adaptive: Rate volatility in 2025 means more requests for interest rate hedging. Ask about forward commitments for pre-construction deals.
- Documentation is Key: Prepare year-to-date and trailing-12 property financials, clean rent rolls, and full resumes for the sponsorship team to streamline approvals.
Why Indiana is a Top Multifamily Market in 2025
Boasting steady job growth, inbound migration, affordable living, and thriving education/health sectors, Indiana offers resilient rental demand and a relatively low barrier to entry versus coastal markets. Direct flights, strong logistics, and pro-business climate ensure major commercial districts across the state remain prime for new multifamily development and acquisition in 2025.
Start Your Indiana CRE Loan Journey
Indiana’s 2025 commercial real estate lending environment empowers investors to seize value in both urban and secondary markets. Connect with local and national lenders active in Indiana—like Old National Bank, Merchants Capital, Peoples Bank, and others—to explore current rates, terms, and programs matched to your multifamily vision.
Secure your next investment property or refinance your Indiana multifamily asset with best-in-class financing options designed for today’s dynamic market.
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