Commercial Real Estate Loans in Indiana: 2025 Investor’s Guide
Indiana’s resilient, expanding economy continues to draw investors to its diverse selection of commercial properties. Whether you’re looking to acquire an office building in downtown Indianapolis, construct a mixed-use development in Carmel, or refinance a retail center in Fort Wayne, understanding your commercial real estate loan options in Indiana is crucial for success in 2025.
- Commercial Real Estate Loans in Indiana: 2025 Investor’s Guide
- 2025 Indiana Market Overview
- Commercial Mortgage Options for Indiana Investors in 2025
- Other Commercial Loan Types Available in Indiana
- Step-by-Step Commercial Mortgage Application Process in Indiana
- Success Stories: Indiana Commercial Property Financing in Action
- Why Invest in Indiana CRE in 2025?
- Indiana CRE Lending Outlook: 2025 and Beyond
- Conclusion: Secure Your Commercial Real Estate Loan in Indiana
2025 Indiana Market Overview
Despite fluctuating national headlines, Indiana’s commercial real estate (CRE) market shows steady job growth, attractive capitalization rates, and a healthy pipeline of developments across the state. Key commercial areas include:
- Downtown Indianapolis: The state’s commercial engine with a robust office, retail, and multifamily inventory.
- Keystone at the Crossing: High-end retail and office development seeing continued demand from tech and finance firms.
- Fort Wayne Central Business District: Revitalized CBD with new mixed-use and multifamily investments.
- South Bend Medical Corridor: Driven by healthcare, medical office, and biotechnology tenants.
- Evansville Riverfront: Focus on hospitality, logistics, and industrial redevelopment.
- Carmel Midtown: Major multifamily and mixed-use growth in suburban Indianapolis.
- Lafayette/West Lafayette: Student housing and life sciences investments anchored by Purdue University.
- Fishers Innovation District: Booming flex, office, and multifamily sector supporting tech startups.
Commercial Mortgage Options for Indiana Investors in 2025
For most property investors, commercial mortgages are the backbone of their CRE financing strategy. These fixed or variable rate loans enable the purchase, refinancing, or cash-out of properties such as office buildings, medical offices, industrial warehouses, retail centers, and more.
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:
Notable Indiana Commercial Mortgage Lenders
- Old National Bank: Indiana’s largest locally headquartered commercial lender. Specializes in local market underwriting.
- First Merchants Bank: Strong in office, retail, and industrial deals across Central and Northern Indiana.
- Lake City Bank: Focuses on small-to-midsize loans for retail, hospitality, and multifamily.
- Horizon Bank: Creative financing options for value-add projects and mixed-use properties.
- PNC Real Estate: National reach with a major Indiana presence and specialty in large projects.
2025 Indiana CRE Mortgage Highlights
- Loan Amounts: $500,000 up to $50 million+, depending on property/borrower strength.
- Typical LTV: Up to 75% for stabilized properties.
- Rates: Fixed rates start near 6.25–7.00% (June 2025), with variable options available.
- Terms: 5 to 25 years, amortized up to 30 years.
- Eligible Properties: Office, retail, shopping centers, self-storage, industrial, hotels, and more.
Other Commercial Loan Types Available in Indiana
Bridge Loans
Short-term, interest-only loans to temporarily finance an acquisition or reposition while securing long-term permanent financing.
Construction Loans
Specialized financing for ground-up developments or major renovations, with draw schedules aligned to construction milestones.
Multifamily Loans
Dedicated programs for purchasing, refinancing, or rehabbing apartment buildings (5+ units), including Fannie Mae, Freddie Mac, HUD FHA, and local bank products.
Step-by-Step Commercial Mortgage Application Process in Indiana
- Property and Market Analysis: Clearly identify the asset type and submarket (e.g., retail in Fishers Innovation District).
- Loan Term Selection: Decide on length (5, 7, 10, 20 years) and fixed or floating rate.
- Engage with a Local Lender/Broker: Approach Indiana-based banks such as Old National or First Merchants for pre-qualification.
- Document Submission: Prepare financial statements, rent rolls, operating history, business plan, and property details.
- Initial Underwriting & LOI: Lender reviews materials and issues a Letter of Intent (LOI) outlining terms and conditions.
- Appraisal & Environmental Study: Third-party reports (MAI appraisal, Phase I ESA) are typically required.
- Final Underwriting & Approval: Lender completes due diligence; loan is formally approved by committee.
- Loan Closing: Sign loan docs, fund escrow, and transfer proceeds—congratulations, your CRE loan is closed!
Success Stories: Indiana Commercial Property Financing in Action
1. Keystone Office Tower Acquisition
Borrower: Experienced Indianapolis investor.
Loan: .2M commercial mortgage from Old National Bank (70% LTV, 10-year fixed at 6.5%).
Result: Repositioned and leased up to national accounting firm, achieving 9% cash-on-cash return in the first year.
2. Fort Wayne Multifamily Portfolio Refinance
Borrower: Regional real estate group.
Loan: .5M multifamily loan through Freddie Mac Small Balance Loan program (75% LTV, 10-year fixed at 6.35%, interest-only first 3 years).
Result: Extracted capital for further acquisitions and improved DSCR to 1.45x after renovations.
3. Evansville Retail Center Bridge Financing
Borrower: Local partnership.
Loan: .8M bridge loan via Horizon Bank (24 months interest-only, 8.25% rate, 65% LTV).
Result: Funded tenant improvements and secured two new leases, enabling a permanent refi at a higher valuation.
4. Carmel Midtown Mixed-Use Construction
Borrower: Developer with strong portfolio.
Loan: .3M construction loan from PNC Real Estate (60% LTC, floating rate at SOFR+2.65%).
Result: Project finished on-time, 70% leased at certificate of occupancy, setting new comp for the area.
Why Invest in Indiana CRE in 2025?
- Steady Population Growth: Supports multifamily, retail, and medical office demand.
- Affordable Entry Points: Lower cost basis than coastal peers, increasing cash-on-cash returns.
- Diversified Economy: Major sectors in manufacturing, logistics, higher education, and healthcare.
- Pro-Business Climate: Favorable tax policies and streamlined regulatory environment.
Indiana CRE Lending Outlook: 2025 and Beyond
Many lenders in Indiana have responded to 2025’s market dynamics by slightly tightening underwriting but expanding their lending to well-located and well-sponsored projects. Key tips for borrowers:
- Seek local lenders who know the market’s nuances, especially for non-institutional deals.
- Be prepared for comprehensive documentation and higher scrutiny on cash flow projections.
- Capitalize on opportunities in up-and-coming submarkets—Fishers, Midtown Carmel, and Lafayette/West Lafayette are seeing activity from institutional and independent investors alike.
Conclusion: Secure Your Commercial Real Estate Loan in Indiana
The Indiana commercial real estate market in 2025 presents robust opportunities for investors of all sizes. By leveraging tailored commercial mortgage products and working with experienced in-state lenders, you can finance office, retail, mixed-use, and multifamily properties with confidence. Stay proactive, know your options, and partner with Indiana’s top lenders to maximize returns in the Hoosier State this year and beyond.
Get a No Obligation Quote Today.
Use these trusted resources to grow and manage your small business—then connect with GHC Funding
to explore financing options tailored to your needs.
GHC Funding helps entrepreneurs secure working capital, equipment financing, real estate loans,
and more—start your funding conversation today.
Helpful Small Business Resources
