Commercial Real Estate Loans in Indiana: Your 2025 Investor’s Guide
Indiana’s dynamic commercial property market is primed for growth in 2025, making it an ideal destination for investors seeking opportunities in office, retail, industrial, and multifamily assets. Whether you’re eyeing Indianapolis’s bustling downtown or emerging corridors in South Bend, understanding your commercial real estate loan options is crucial to executing successful acquisitions and developments.
- Commercial Real Estate Loans in Indiana: Your 2025 Investor’s Guide
- 2025 Indiana Commercial Mortgage Market Overview
- Key Commercial Real Estate Districts in Indiana
- Top Commercial Lenders in Indiana 2025
- 2025 Guide: Commercial Mortgages in Indiana
- Step-by-Step: Applying for a Commercial Mortgage in Indiana
- Bridge Loans for Property Transitions
- Multifamily Loans: Indiana’s Apartment Boom
- Construction Loans for Indiana CRE Projects
- Indiana 2025 Lending Outlook
- Frequently Asked Questions
- Get Started: Find the Right Indiana CRE Loan
2025 Indiana Commercial Mortgage Market Overview
The Hoosier State continues to attract both in-state and out-of-state investors with:
- Competitive pricing in secondary and tertiary markets like Fort Wayne, Evansville, and Muncie
- Strong industrial growth corridors in northwestern Indiana (Hammond, Gary, Portage)
- Robust healthcare/biotech development in Indianapolis’s research districts
- Steady retail and mixed-use redevelopments in Bloomington and Lafayette
Average Indiana commercial real estate loan rates (as of Q2 2025):
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
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- Commercial Mortgages: 6.15% – 7.35% (fixed), 6.00%+ (floating)
- Bridge Loans: 8.00% – 11%
- Construction Loans: 7.25% – 9.00%
- Multifamily Loans (fixed): 5.50% – 6.90%
Key Commercial Real Estate Districts in Indiana
- Indianapolis Downtown Mile Square – Office towers, mixed-use revitalization, convention/tourism hubs
- Northwest Indiana Industrial Corridor (Hammond, Gary, Portage) – Demand for distribution centers & light manufacturing
- Carmel Midtown & Arts District – Upscale office and retail, Class A apartments
- Bloomington IU Campus Vicinity – Student, medical, and retail-anchored multifamily
- Fort Wayne South Anthony Corridor – Redevelopment of retail and light industrial assets
- Evansville Downtown Riverfront – Historic hotels, office conversions, and restaurant clusters
- Fishers Technology Park – Suburban headquarters and R&D facilities
Top Commercial Lenders in Indiana 2025
- Old National Bank – Indiana’s largest homegrown lender, full suite of CRE loans
- Horizon Bank – Broad bridge, construction, and perm loan offerings for mid-market projects
- First Merchants Bank – Strong presence in multifamily and retail financing
- Star Financial Bank – Construction and owner-occupant CRE loans
- PNC Bank – National player with specialty lending teams for Indiana
- Live Oak Bank – SBA 504 and 7(a) commercial property loans
2025 Guide: Commercial Mortgages in Indiana
Commercial mortgages remain Indiana’s foundation for CRE acquisition and refinance. These permanent loans typically finance stabilized assets—office buildings, shopping centers, industrial parks, or mixed-use developments.
Indiana Commercial Mortgage Features (2025):
- Loan amounts: $500,000 to $20 million+
- Typical terms: 5, 7, 10, or 15 year fixed rates, 20-25 year amortization
- Recourse and non-recourse options
- Loan-to-Value: 65%–80%
- Eligible properties: Office, retail, industrial, mixed-use, warehouse, hospitality
- Custom covenants for property type and borrower experience
Case Study: Indianapolis Office Portfolio Refinance
Sponsor: Local investor syndicate
Asset: Three-building Class B office park (92% leased)
Loan: .8 million permanent commercial mortgage from Horizon Bank, 6.45% fixed, 10-year term, 75% LTV.
Outcome: Refinancing increased cash flow by 0,000/year, enabled new tenant improvements.
Step-by-Step: Applying for a Commercial Mortgage in Indiana
- Pre-qualification: Share property financials, rent roll, P&L, and borrower background with selected lender(s).
- Loan Proposal & LOI: Lender issues terms sheet outlining loan amount, rate, fees, closing timeline.
- Due Diligence: Order appraisal, Phase 1 environmental review, title, and site inspection. Lender reviews leases and borrower credit.
- Underwriting: Full analysis of DSCR (Debt Service Coverage Ratio), global cash flow, and borrower net worth.
- Commitment & Closing: Upon approval, lender funds the loan and records the mortgage. Closing typically 45–60 days post-application.
Bridge Loans for Property Transitions
For rapid acquisitions, value-add plays, or distressed asset rehabilitation, Indiana bridge loans deliver short-term, interest-only financing. Available from both regional banks and specialty lenders, recent trends show more “light renovation” bridge activity in commercial corridors such as Fort Wayne South Anthony and Downtown Evansville.
Bridge Loan Success Story: Hammond Industrial Conversion
Investor: Chicago-based developer
Loan: .3M bridge loan from PNC Bank, 9.2% interest-only, 18-month term
Use: Acquisition & repositioning of vacant 140,000 sf warehouse for last-mile logistics
Result: Sold to REIT for $3.4M after 9 months, repaid loan early, netting a $700,000 profit
Multifamily Loans: Indiana’s Apartment Boom
With statewide vacancy rates below 5% and student populations driving new absorption in cities such as Bloomington, Lafayette, and South Bend, multifamily lending is highly competitive in 2025. Options include Fannie Mae/Freddie Mac agency loans, bank portfolio loans, and private debt funds.
- Loan amounts: $1M–$20M+
- Rates: Start as low as 5.50% (fixed, 5-10 years)
- Up to 80% LTV for stabilized assets
- Interest-only and cash-out options for seasoned borrowers
Multifamily Loan Case Study: Bloomington New Build
Sponsor: Student housing firm
Project: 72-unit Class A apartments (pre-leased, adjacent IU campus)
Loan: $7.5M from First Merchants Bank, 6.05% fixed 10-year, interest-only for 18 months
Benefit: Accelerated lease-up, amortization begins after stabilization, project fully occupied within 6 months
Construction Loans for Indiana CRE Projects
Driven by urban renewal and new logistics demand, Indiana’s construction financing market is robust in 2025, particularly for pre-leased retail, medical office, and industrial spaces.
- Loan proceeds: 70%–75% LTC (Loan-to-Cost)
- Terms: 12 to 24 months, floating rates
- Interest reserves funded at close
- Transition to permanent financing post-completion
Construction Financing Example: Carmel Midtown Retail Pad
Developer: Regional retail operator
Loan: .2M construction line from Star Financial Bank, prime + 1.5%, 15-month term
Security: Pre-leased to national QSR chain
Outcome: Finished on budget; refinanced into .65M commercial mortgage with Old National Bank, LTV 77%
Indiana 2025 Lending Outlook
Despite fluctuations in national commercial lending, Indiana remains a stable and competitive market. Lenders are increasingly requiring detailed business plans and experienced sponsorship, but still offer flexibility for strong deals, especially in industrial, multifamily, and medical/office assets.
Frequently Asked Questions
- How long does a commercial real estate loan take to close in Indiana?
- Standard mortgages close in 45-60 days; bridge and construction loans may close in as little as 21-30 days with full file readiness.
- What loan-to-value ratios are typical for Indiana CRE?
- Permanent: 65%-80%. Construction: up to 75% of total project costs. Bridge: 60%-70% (after-repair value).
- Can I get non-recourse loans?
- Yes—for stabilized, cash-flowing properties, most agency and some bank portfolio loans offer non-recourse terms.
Get Started: Find the Right Indiana CRE Loan
Whether acquiring your next office building in Indianapolis or breaking ground on a Fort Wayne warehouse, Indiana’s 2025 lending environment offers flexible, locally focused borrowing options.
Connect with one of the state’s top lenders for tailored terms, local insight, and expedited approvals.
Get a No Obligation Quote Today.
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