Indianapolis Commercial Mortgage Loans
$1,000,000 Minimum

Indianapolis Commercial Mortgage Rates - Rates updated May 25th, 2020

Loan Product Starting Rates LTV
Single Tenant Lease Rates 3.54% Up to 75% Get Free Quote
Commercial Mortgage Rates 3.84% Up to 75% Get Free Quote
Multifamily Mortgage Rates 3.53% Up to 80% Get Free Quote
Business Real Estate Loans 3.65% Up to 90% 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 3.53% (as of May 25th, 2020)
• 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

Commercial Mortgage Rate Trends in 2020

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

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. Click here to get started with a free loan quote.

Indianapolis Multifamily Loan Information

Mixed-Use Apartment Projects Transforming Underutilized Areas in the Indianapolis Metro

Redevelopments add mixed-use properties in walkable neighborhoods. Despite a wave of new units coming online in 2019, the positive reception by tenants will tighten vacancy and drive rent growth. In Carmel, the widening of the Monon Trail is contributing to a surge in mixed-use buildings along the corridor. Nearly 650 rentals are underway near the trail in addition to offices, a hotel, retail space and restaurants. In Speedway, the downtown area is being refurbished to include rentals above retail. Along Massachusetts Avenue in downtown Indianapolis, the former Coca-Cola bottling plant is being transformed into the Bottleworks District. The first phase of the project will open in 2020 with a hotel, food hall, theater, retail shops and office space. A later phase will add apartments and condos by 2023. Strong rental demand throughout the market is underpinned by steady employment growth and rising home prices that place homeownership out of the reach of more tenants and keep the renter pool expanding.

Wide range of investors confident in Indianapolis apartment market. Steady rental deliveries over the past five years are keeping out-of-state institutions and REITs actively targeting newer Class A assets with at least 250 units. Buildings near transit in walkable urban neighborhoods are especially desired. Cap rates for these buildings are typically in the mid-5 to low-6 percent range, well above coastal markets, yet 100 to 200 basis points less than the metro average. Buyers in search of steady income streams and higher yields may find opportunities in Johnson County, particularly in Greenwood. Here a lack of new inventory over the past six years has kept vacancy among the lowest metrowide, providing solid rent gains. Investors seeking upside potential may find opportunities along the Red Line. The rapid bus service will open this year running from the University of Indianapolis through downtown and into Broad Ripple neighborhood, benefiting apartments nearby.

2019 Indianapolis Apartment Market Forecast

National Multifamily Index of 33, up 3 places.  Lower vacancy and strong rent gains lift Indianapolis three notches into 33rd place in this year’s Index.

Employment in Indianapolis is up 2.3%.  During 2019, staffs increase by 25,000 workers, up from a gain of 24,400 jobs last year.

Construction of apartments in Indianapolis is up 2,700 units.  Deliveries rise from 2,500 apartments last year but remain below the five-year average. Downtown Indianapolis will receive more than 700 of this year’s units.

Vacancy in Indianapolis multifamily is down 50 basis points.  Rental demand will outpace deliveries, moving vacancy down to 5.1 percent in 2019, following a 70-basis-point decline last year.

Indianapolis apartment rents are up 6.2%.  After a 5.9 percent surge in 2018, the average effective rent posts the largest annual gain of the cycle, soaring to $938 per month this year.

Investment in Indianapolis apartments is good.  Buyers looking for properties with some upside potential may find opportunities near the many mixed-use redevelopment projects underway in Indianapolis, Carmel and Speedway.

Data provided by Marcus & Millichap

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