A comprehensive analysis of recent commercial lending activities in Indianapolis, IN, reveals a vibrant landscape marked by the successful closure of 1,095 deals within the past 90 days. The breakdown of these transactions reflects diverse property types, with notable concentrations: 563 deals in Single-Family Residences (SFRs), 171 in Land, 142 in Residential – Duplex/Triplex/Quadplex, 51 in Apartments, and varying deals in Agriculture/Rural, General Commercial, Hospitals, Motels and Hotels, Industrial, Office, Condos, and Retail.
Indianapolis’s commercial lending sector sees active participation in Industrial, Retail, and Office spaces. The average loan amount stands at $19 million, influenced by portfolio loans for Luxury Multifamily and Residential properties. The highest loan funded during this period reached an impressive $381,118,756, facilitated by Goldman Sachs.
Leading the lending landscape in Indianapolis are key institutions such as Kiavi Funding, Old National Bank, Huntington National Bank, JP Morgan Chase, LendingOne, and Lima One Capital, collectively funding 84 deals in the last 90 days and establishing themselves as nationwide leaders.
In Indianapolis, Debt Funds and Regional Banks engage in healthy competition, vying to fund a significant number of deals by offering favorable rates and terms. Regional Banks primarily offer diverse loan products such as SBA, New Construction/Ground-Up Construction, Long-Term Rental 1-4 Units, and Permanent/Long Term loans. In contrast, Debt Funds, including Lima One Capital, LendingOne, and Dominion Financial Services, provide short-term financing options like Fix&Flip/Value Add and Bridge, along with Portfolio/Blanket Loans, Multifamily, and Short-term Rental loans.
Debt Funds stand out by offering up to 75%-80% Loan-to-Value (LTV), while Regional, Community Banks, and National Banks (Huntington National Bank, Old National Bank, First Merchants Bank, JP Morgan Chase) typically cap LTV at 85% for SBA products and 65% for Commercial Real Estate (CRE) loans.
Currently, the most competitive rate in Indianapolis is offered by National Banks, standing at 6.48%, underscoring the city’s dynamic and professional commercial real estate lending environment.
