Commercial Real Estate Loans in Indiana: Your Complete 2025 Guide
Indiana’s bustling commercial real estate (CRE) landscape offers abundant opportunities in sectors ranging from logistics and manufacturing to healthcare and multifamily. As the Hoosier State continues to attract investors in 2025, understanding the nuances of commercial real estate loans in Indiana is vital for success—whether you’re acquiring an office tower in Indianapolis, refurbishing a retail property in Carmel, or developing industrial space in Fort Wayne.
- Commercial Real Estate Loans in Indiana: Your Complete 2025 Guide
- 2025 Indiana CRE Market Overview
- Key Commercial Lenders in Indiana (2025)
- Types of Commercial Real Estate Loans in Indiana
- Indiana Commercial Loan Application Process (2025)
- Success Stories from Indiana Investors (2025)
- Indiana CRE Loan Tips for 2025 Investors
- Frequently Asked Questions
- Start Your Indiana CRE Loan Journey in 2025
2025 Indiana CRE Market Overview
Indiana’s central geography and pro-business climate have fueled steady growth in its commercial districts. Notable markets include:
- Downtown Indianapolis: A major hub for office and mixed-use developments, with robust demand from tech, education, and healthcare sectors.
- Hamilton County (Carmel, Fishers): Known for affluent demographics, premium retail, and thriving multifamily development.
- Purdue Research Park (West Lafayette): Life sciences and tech-focused with attractive investment properties.
- South Bend-Elkhart Corridor: Strong industrial and logistics center fueled by automotive and distribution.
- Fort Wayne Downtown & Suburbs: A growing market for office, residential, and healthcare-related commercial spaces.
- Evansville Riverfront District: Transformation with hotels, entertainment, and medical property investments.
- Bloomington: Steady demand for student housing and hospitality-related assets adjacent to Indiana University.
Key Commercial Lenders in Indiana (2025)
- Old National Bank: Indiana’s largest homegrown commercial lender, strong in multifamily and retail financing.
- Lake City Bank: Leading mid-market and SBA commercial mortgages, with special programs for healthcare and manufacturing properties.
- First Internet Bank (Fishers HQ): National reach with deep experience in Indiana bridge and construction loans.
- STAR Financial Bank: Specializes in CRE loans for emerging suburban and tertiary markets across Indiana.
- Centier Bank: Focused on northwest Indiana, especially industrial and hospitality property loans.
Types of Commercial Real Estate Loans in Indiana
1. Commercial Mortgages
Traditional CRE loans used for purchasing stabilized office, industrial, retail, or mixed-use properties. These typically feature:
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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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For details on GHC Funding's specific products and to start an application, please visit our homepage:
- Loan amounts: $500,000 to $20 million+
- Terms: 5-25 years, with fixed or floating interest rates (rates vary 6.1%-8.9% in 2025)
- LTV ratios: Up to 75%, interest-only or amortizing structures
2. Bridge Loans
Short-term, flexible financing ideal for property repositioning, lease-up, or acquisition opportunities. In Indiana for 2025:
- Typical terms: 1-3 years, interest-only, rapid funding (as little as 15 days)
- Rates: 8.5%-12.5%, depending on sponsor strength and asset type
- LTV: Up to 75%, sometimes combined with mezzanine debt for higher leverage
3. Construction Loans
For ground-up development of multifamily, industrial, or mixed-use properties. Key features:
- Loan amounts: $1 million up to $50 million (for large developers)
- Interest rates: 7.2%-10.0% in 2025, generally interest-only during construction period
- Advances based on: Project milestones, requiring budget & contractor vetting
4. Multifamily Financing
Specialized for apartment buildings and large SFR portfolios. In Indiana, Fannie Mae, Freddie Mac, and select local banks provide:
- Loan terms: 5-30 years, with balloon structures common
- LTV: Up to 80% for stabilized assets
- Rates: 5.6%-7.5% for qualified sponsors, 2025 market
- Non-recourse options: Often available for stabilized assets and major metro areas
Indiana Commercial Loan Application Process (2025)
- Prequalification: Contact an Indiana lender to discuss your project and get an initial quote.
- Document Submission: Prepare a loan package including business entity docs, financial statements, rent roll, property appraisal, and project plan (for new development).
- Underwriting: Bank reviews the property, borrower experience, cash flow, and market conditions.
- Term Sheet & Approval: Receive a term sheet outlining loan amount, rate, term, and fees. Upon acceptance, formal credit approval follows.
- Due Diligence & Appraisal: Lender orders appraisal, environmental report, and reviews title/deed history.
- Closing: Final loan documents are signed, funds disbursed (or construction draws established for new builds).
Typical timeline: 30 to 60 days for mortgage or multifamily loans. Bridge loans can close in under 3 weeks for urgent projects.
Success Stories from Indiana Investors (2025)
- Downtown Indianapolis Office Repositioning: An investment group secured a $3.5 million bridge loan from First Internet Bank at 9.9% for a rapid value-add play—leasing up a previously vacant mid-rise and refinancing with a permanent loan after 18 months.
- Fort Wayne Multifamily Acquisition: A local sponsor financed a $2.7 million 52-unit multifamily property through Old National Bank with a 10-year, 6.75% fixed rate mortgage, 30-year amortization, and 77% LTV—enabling cash-out for renovations.
- Carmel Retail Strip Center Construction: Small developer received a $1.2 million construction loan from STAR Financial Bank at prime +1.25%, with interest-only payments during the 16-month build, then stabilized with long-term CRE financing.
- Logistics Warehouse in South Bend: Using Lake City Bank, an industrial sponsor closed a $4.1 million mortgage at 7.1%, 20-year term, financing the purchase and light improvements of a critical distribution center near the Indiana Toll Road.
- Bloomington Student Housing: A Purdue alum group closed a $5.2 million Fannie Mae multifamily loan (non-recourse, 12-year fixed at 6.15%, 81% LTV) for a purpose-built student housing asset adjacent to campus.
Indiana CRE Loan Tips for 2025 Investors
- Know your submarket: Lender appetite varies greatly between Indianapolis, suburban hubs like Carmel, and tertiary locations. Leverage local comps in your proposal.
- Highlight property cash flow: In 2025, lenders prioritize DSCR (debt service coverage ratio) minimums—typically 1.25x or higher for stability.
- Prepare for higher scrutiny: Banks scrutinize sponsorship experience and financial reserves more aggressively due to market shifting from 2022-2024 volatility.
- Interest rate environment: Maintain flexible exit strategies; consider shorter-term bridge financing if you expect further rate movement in late 2025.
Frequently Asked Questions
- What are typical commercial loan rates in Indiana (2025)?
Most stabilized CRE loans: 6.2%-8.9%. Bridge/construction: 7.5%+ - How much do I need for a down payment?
Expect to invest 20%-30% of project value for most properties. Some SBA/agency financing allows lower equity for select asset types. - Which lenders are best for new investors?
Look to local/regional banks (Lake City, STAR Financial) for flexible underwriting, or non-bank lenders for speed/creative structures on more complex deals. - How fast can I access bridge loan capital?
Bridge loans can close in 2-3 weeks in Indiana with complete documentation and appraisal coordination.
Start Your Indiana CRE Loan Journey in 2025
Success in Indiana’s dynamic commercial real estate market depends on partnering with the right lenders and leveraging strong market intelligence. Whether you’re buying, repositioning, or building, local expertise matters. Consult with bank officers at Old National, First Internet Bank, or Lake City to get tailored quotes, and ensure your lending partner is well-versed in your target Indiana submarket. With demand rising across office, multifamily, retail, and logistics, 2025 is poised to be another strong year for Indiana CRE investors who are well-prepared and well-financed.
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