Indianapolis Commercial Mortgage Loans
$1,000,000 Minimum

Indianapolis Commercial Mortgage Rates - Rates updated June 15th, 2021

Loan Product Rates (start as low as) LTV
Multifamily Mortgage Rates (Over $6,000,000) 2.59% Up to 80% Get Free Quote
Multifamily Mortgage Rates (Under $6,000,000) 3.19% Up to 80% Get Free Quote
Single Tenant Lease Rates 3.44% Up to 75% Get Free Quote
Business Real Estate Loans 3.69% Up to 90% Get Free Quote
Commercial Mortgage Rates 3.69% Up to 75% Get Free Quote
Indianapolis Commercial Real Estate Indianapolis Commercial Mortgage

Select Commercial is a leading commercial real estate lender. We have excellent commercial mortgage loan products and options available for owners and purchasers of commercial real estate and multifamily buildings throughout the city of Indianapolis. While we lend across the entire continental United States, we are able to give our best rates and loan programs to certain areas that we feel are strong markets. Indianapolis is one of the cities that we consider to be a premium market and we actively look to originate good quality loans here for our clients. We have a diverse array of many available loan products to help qualified Indianapolis borrowers looking to purchase or refinance a commercial property. If you are looking to obtain a multifamily building loan or commercial real estate loan, don't hesitate to contact us. There are many reasons why our customers like doing business with Select Commercial. We have a simplified application process and we do not charge any upfront application or processing fees. We typically offer 24-hour pre-approvals with no-cost and no-obligation. Our long term fixed rates are excellent, and we look to close within 45 days of application.

Indianapolis Commercial Mortgage Benefits

Indianapolis commercial mortgage rates start as low as 2.59% (as of June 15th, 2021)
• No upfront application or processing fees
• Simplified application process
• Up to 80% LTV on multifamily, 75% on commercial (90% with SBA)
• Terms and amortizations up to 30 years
• Loans for purchase and refinance, including cash-out
• 24 hour written pre-approvals with no cost and no obligation

Recent TRUSTPILOT Reviews

Select Commercial Funding Reviews from TRUSTPILOT

A three year journey
"Thanks Stephen for all of your hard work in getting our deal closed! I appreciate your professionalism and patience throughout a complicated process. You always were there for my partner and I whenever we had questions and needed answers quick. It was a pleasure to have worked with you and Select Commercial!"

Recent Closings

Indianapolis Multifamily Loan Information

Indianapolis Economic Trends Indianapolis Economic Trends

IndyGo Boosts Connectivity to Downtown Employers; Rental Demand Near Route to Benefit

Red Line completion enhances lease-up outside the core. More than a decade in planning, the IndyGo transit development came to fruition with the completion of the Red Line in late 2019, the first of a three-part transit project. The Red Line runs north to south through the densest portion of Marion County, within 1 mile of roughly 150,000 total jobs. Many of these roles are downtown, and residents of neighborhoods well outside of the core will now have transit accessibility to them. Class C apartment rentals, particularly in north Marion County near the route along College Avenue, will be in high demand from working-class individuals seeking budget-friendly multifamily housing options with efficient access to their employers. Additionally, the southern portion of the Red Line feeds into the University of Indianapolis, and students previously inclined to find housing within walking distance of the campus will explore apartments farther away along the route. As strong lease-up will reduce available options for tenants seeking multifamily rentals within proximity of the Red Line, properties along the route will foster sizable rent gains. Indianapolis is a great place for investors to take out an apartment loan to purchase their next property.

North Indianapolis receiving the bulk of investor attention. Vacancy has contracted every year since 2013, boosting the metro’s multifamily investment appeal. The majority of apartment sales are within the densely populated neighborhoods north of the core, in the corridor between Interstate 65 and I-70. With little space to develop apartments, few projects have come to market here recently, and a large share of deals have been for apartments built prior to 1950. These properties have been able to maintain robust demand through renovations as well as a lack of competition, and buyers have been closing on these multifamily assets priced between $1 million and $5 million with cap rates in the 7 to 8 percent range. Investors willing to pay a higher price point for large-scale mid-tier multifamily assets will expand their search parameters farther north to Washington Township. Here, multiple 250-plus-unit Class B apartment complexes recently traded for $10 million to $25 million, with initial yields in the 6 percent area. Investors looking to finance their next acquisition with a multifamily loan should definitely consider the Indianapolis market.

2020 Indianapolis Multifamily Market Forecast

Indianapolis Completions vs. Absorption Indianapolis Completions vs. Absorption

The Indianapolis National Multifamily Index Rank is at 29, up 4 places. Tightening vacancy and escalating rents improve Indianapolis’ standing in this year’s Index.

Employment in Indianapolis is up 0.7%. Employment growth holds par with the 0.7 percent advance logged in 2019 as 7,500 roles created.

Construction in Indianapolis is expected to exceed 1,900 apartment units. Development activity moderates significantly from the 3,300 units finalized in the previous year. This will be the fewest rentals completed since 2013.

The vacancy in Indianapolis is down 20 bps. A wane in construction allows vacancy to contract for the seventh consecutive year, moving down to 5.2 percent.

Rent in Indianapolis is up 5.0%. Average effective rent continues to jump, reaching $968 in 2020. This year’s growth rate exceeds the trailing-three-year average annual 4.8 percent gain.

The Indianapolis market remains a strong option for investors looking for an apartment loan. Institutional investors home in on newly built apartments in Fishers and Carmel. Those priced out will target obtainable assets north of downtown where entry costs are lower on average. We recommend investors obtain a multifamily loan to finance their next purchase in Indianapolis.

Data provided by Marcus & Millichap.

Commercial Mortgage Rate Trends in 2020

Indianapolis Vacancy and Rents Indianapolis Vacancy and Rents

At the beginning of 2020 the overall market outlook did not suggest any crucial factors that would negatively impact the commercial mortgage market. Commercial mortgage lenders and investors expected a very profitable 2020. Almost 65 percent of the top commercial real estate companies believed that commercial mortgage loan originations would go up this year and over 15 percent anticipated an overall rise of over 5 percent. Data released at the beginning of 2020 indicated that commercial mortgage lenders were expected to close over $680 billion of commercial mortgage loans this year. Experts were of the belief that commercial mortgage lenders would remain bullish about making loans. In addition, as commercial mortgages rates were expected to go down most industry leaders were convinced that borrowers in 2020 will have a strong desire to take out commercial mortgage loans. However, with the recent outbreak of the Covid-19 pandemic, the US and global economy has been incredibly unstable. The stock market seems to be bottoming out and commercial mortgage rates have been hit very hard. While the Fed has dropped short term interest rates, long term commercial mortgage rates have actually been rising. Huge cities like New York are shutting down. In this economic climate, many investors are scared to purchase commercial real estate and to take out commercial mortgages. Additionally, the oil industry has been hit hard. Not only are people traveling less due to coronavirus, China and Russia are currently involved in a price war which is driving the price of oil way down. Many people are optimistic that as spring and summer roll in and public health officials learns how to handle this pandemic, the economy should regain its strength.

What Happened with Commercial Mortgage Rates in 2019

Indianapolis Sales Trends Indianapolis Sales Trends

As we review the 2019 year, the commercial real estate market continued to flourish as the longest economic recovery in American history continued. Due to both GDP growth and a steady decline in the unemployment rate, 2019 saw the stock market make huge gains. Many investors thought that commercial mortgage rates would go up last year. However, in actuality commercial mortgage rates actually went down three times. These interest rates helped to spur investors to put more money into commercial real estate. With regards to commercial mortgage loan origination, the 2019 fiscal year far exceeded expectations due to solid fundamentals, low interest rates and higher demand for commercial mortgages. While 2018 commercial mortgage volume totaled about $339 billion, an increase of 18.9% from 2017, the 2019 numbers total about $369 billion. On a larger scale, the 2019 economy prospered overall. Over the course of the year about 2.1 million jobs were added to the market. In addition, the unemployment rate decreased about 50 basis points last year, matching the lowest unemployment rate in fifty years. At the beginning of 2019 many investors were expecting a recession. However, the economy improved as job growth rose and the unemployment rate decreased. This economic improvement had an immensely positive impact on the commercial real estate market as more investors rushed to put their money into commercial properties.

Indianapolis Commercial Mortgage Loan Options

Our staff is professional and knowledgeable, and we look forward to working with you on your next commercial mortgage transaction. We arrange financing in the city of Indianapolis for the following:

  • Multifamily Building Loans – we actively lend on garden apartments, high-rise multifamily buildings, student housing complexes, underlying cooperatives, and all other types of residential dwellings. We consider loan requests up to 80% LTV. We offer loans with and without recourse (personal guarantees) and with and without prepayment penalties. We offer fixed rate loans with terms from 3 to 30 years.
  • Office Building Loans – we lend on all types of office properties, including multi-tenant and single tenant buildings in all locations. We lend on both owner occupied and investor properties. We typically lend up to 75% LTV on investor properties and up to 90% on owner occupied properties. Most loans are written for either 5, 7, or 10 years at a fixed rate with a 25-year amortization.
  • Retail Building Loans – we gladly consider requests for commercial mortgage loans on shopping centers, retail strip centers, and individual retail stores. We are a little bit more conservative on retail loans these days based on the current climate for retailers and will consider LTV ratios of 65%-75% depending on the deal. We actively lend on NNN single tenant retail locations such as Starbuck’s, CVS, Walgreens, Dollar General, and other national credit rated tenants.
  • Industrial Property Loans – we love to lend on warehouses, distribution centers, manufacturing facilities and other industrial properties. Often, these properties are owner occupied by the owner’s business. We also lend on multi-tenant industrial properties as well. We look for properties in good locations with access to population centers and transportation.
  • Single/Special Use Loans – we have a special lending division that understands small business lending secured by owner occupied businesses such as motels, gas stations, restaurants, car washes, retail stores, and other specialty properties. Many banks have a hard time with this type of lending as they often do not understand the underlying businesses.
  • Investment Property Loans – any and all income producing property will be considered. We are cash flow driven lenders and look for properties that generate positive cash flow for their owners. We will consider portfolios of single family residences under this group.
  • Bridge Loans – many borrowers do not qualify for regular institutional financing due to various short-term obstacles which need to be resolved before they can qualify for bank type financing. These borrowers often require short term loans, or bridge loans, to overcome these short-term problems.
Our company has multiple capital sources for these loans, including: national banks, regional and local banks, Fannie Mae, Freddie Mac, FHA, HUD, insurance companies, Wall Street conduit lenders (CMBS deals), credit unions and private lenders/hedge funds. Whether you are purchasing or refinancing, we have the right solutions available. We will entertain loan requests of all sizes, beginning at $1,000,000. Get started with a Free Commercial Mortgage Loan Quote.

Indianapolis Commercial Mortgage Loans

Select Commercial provides commercial mortgage loans and multifamily financing throughout Indianapolis and the state of Indiana including, but not limited to, the areas below.

Babe Denny • Lockerbie Square • Rogues Run • Chatham Arch • Mass Ave (Massachusetts Ave) / Arts District • St. Joseph • Fletcher Place • Old Northside • Upper Canal • Indiana University / Purdue University • Ransom Place • Wholesale District