Commercial Property Loans in South Bend, Indiana

Economy in Review

South Bend, Indiana has a diverse economy with a mix of manufacturing, healthcare, education, and retail industries. The city has seen steady job growth over the past few years, with the unemployment rate remaining below the national average. The cost of living in South Bend is also lower than the national average, making it an attractive location for businesses and residents alike.

Multifamily Market

The multifamily market in South Bend has been strong in recent years, with a high demand for rental properties. The city has a large student population due to the presence of the University of Notre Dame, which has contributed to the growth of the multifamily market. The vacancy rate for multifamily properties in South Bend remains low, making it a favorable market for investors.

Office Market

The office market in South Bend has seen some fluctuations in recent years, with a slight increase in vacancy rates. However, the market remains stable overall, with a mix of large corporations and small businesses occupying office space in the city. The downtown area has seen significant redevelopment in recent years, which has contributed to the growth of the office market.

Industrial Market

South Bend has a strong industrial market, with a mix of manufacturing and distribution companies occupying industrial space in the city. The city's location near major highways and rail lines makes it an attractive location for businesses that require easy access to transportation. The vacancy rate for industrial properties in South Bend remains low, making it a favorable market for investors.

Retail Market

The retail market in South Bend has seen some challenges in recent years, with the rise of online shopping impacting brick-and-mortar stores. However, the city has seen some new retail development in recent years, particularly in the downtown area. The vacancy rate for retail properties in South Bend remains stable, making it a favorable market for investors.

Self-Storage Market

The self-storage market in South Bend has seen steady growth in recent years, with a high demand for storage space. The city's growing population and strong economy have contributed to the growth of the self-storage market. The vacancy rate for self-storage properties in South Bend remains low, making it a favorable market for investors.

Hospitality Market

The hospitality market in South Bend has seen significant growth in recent years, particularly with the opening of the new Four Winds Casino in nearby New Buffalo, Michigan. The city has also seen an increase in tourism due to the presence of the University of Notre Dame. The vacancy rate for hotel properties in South Bend remains low, making it a favorable market for investors. In conclusion, South Bend, Indiana offers a diverse and stable commercial property market for investors. With a strong economy and low vacancy rates across multiple property types, the city presents attractive opportunities for those seeking commercial property loans.

Commercial Real Estate Loans by Purpose

There are many types of loans available for commercial properties in South Bend, and the best fit for you depends on your investment strategy. Here are some broad categories of financing available.

Permanent Financing

Permanent financing is a type of loan that remains in place for an extended period of time. It's commonly used to finance the acquisition of commercial properties or to refinance existing debt. Types of permanent financing include bank loans, loans from government-sponsored entities like Fannie Mae and Freddie Mac, HUD loans, credit union loans, loans from life insurance companies, commercial mortgage backed securities (CMBS) loans, and other types of loans depending on the specifics of the commercial property.

Refinancing a Commercial Real Estate Property in South Bend

I wouldn't quite call this a separate type of loan, but I have to mention refinancing in here. These are typically permanent loans (but not always) used to pay down an existing, partially amortizing or interest-only loan.

Often you may be able to time a refinance to happen after an interest rate drop — an ideal solution — but if your loan is maturing during a period of higher rates, you shouldn't stress too much about this. We'll work with you to find the best loan terms for your commercial property by reaching out to potentially thousands of lenders. Just complete the form below, and we'll get to it.

Construction Financing

Construction financing, also known as interim financing, is used to finance the cost of construction for commercial properties. It is usually a short-term loan that covers the cost of land development and building construction. Once construction is completed, the borrower can typically convert this into a permanent loan or pay it off with a new loan.

Bridge Loans

Bridge loans are a type of short-term loan that can be used to cover costs in the interim period between the end of one loan and the beginning of another. They are typically used in commercial real estate to finance the transition between construction financing and permanent financing. Bridge loans generally have higher costs than most other financing options and are often interest-only and non-recourse.

Commercial Real Estate Loans by Type

Depending on the purpose of your loan, you will have several financing options available to meet your investment goals. Read below to learn more about specific loan types.

Bank Loans

Bank loans are a common financing option for commercial real estate in South Bend. They can offer competitive interest rates and flexible terms, but the specifics can vary greatly from bank to bank. While they may not always be the best fit for larger, more complex projects, they can be an excellent option for smaller, simpler properties.

Life Company Loans

Life company loans are typically used to finance high-quality assets in major markets. They generally have lower loan-to-value ratios than most other loan types but offer competitive interest rates and long terms. However, they may not be suitable for riskier projects or properties in less established markets.

Agency Loans

Agency loans, offered by government-sponsored entities like Fannie Mae and Freddie Mac, are typically used for properties that are mostly multifamily. They offer attractive loan terms, low, fixed interest rates, and are non-recourse. However, there are restrictions on the amount of income that can come from other commercial uses.

HUD Loans

HUD multifamily loans are government-backed loans that are primarily used for the construction, substantial rehabilitation, purchase, and refinancing of multifamily properties. These loans offer long-term, non-recourse financing with competitive interest rates but have extensive requirements for qualification.

CMBS Loans

Commercial Mortgage Backed Securities (CMBS) loans are a type of mortgage-backed security backed by commercial real estate loans. Lenders focus more on the strength of the property than the borrower's credit, making them a good option for properties with strong cash flow.

SBA Loans

Small Business Administration (SBA) loans, such as the SBA 7(a) and SBA 504, offer attractive financing options for small businesses. However, the maximum amount for an SBA 7(a) loan is $5 million, while SBA 504 loans can go up to $20 million. They cannot be used for multifamily properties and are only available for properties that the business owner occupies.

Mezzanine Loans

Mezzanine financing is a hybrid form of financing that combines elements of debt financing and equity investment. It is typically used in commercial real estate to fill a funding gap between the primary loan and the total cost of a project.

Commercial Property Insurance in South Bend

This part isn't about loans, but it's just as important to your investment's success. Let's talk (quickly) about insurance.

Insurance premiums have skyrocketed in the past few years, as I'm sure you know. While multifamily gets a lot of the attention, rates for insuring anything from office buildings to shopping centers have jumped significantly.

Janover Insurance Group is dedicated to finding the best insurance solutions for your commercial real estate assets in South Bend. Click to get a free insurance quote for your property — no obligation.