2025 Commercial Real Estate Loans in Ohio for Investors Now

Commercial Real Estate Loans in Ohio: 2025 Investor’s Guide

The Ohio commercial real estate (CRE) market is buzzing in 2025, with growing opportunities in office, industrial, retail, and multifamily sectors. Investors—both local and out-of-state—are seeking the best loan products to maximize returns, especially as Columbus, Cleveland, and Cincinnati experience continued economic revitalization. In this comprehensive guide, we’ll explore commercial mortgages, Ohio’s major business districts, top local lenders, the loan application process, and surefire strategies for success in today’s dynamic lending environment.

Ohio Commercial Real Estate Market Outlook (2025)

• Columbus: Tech and medical office expansion, with Easton and the Short North leading new development.
• Cleveland: Renewed momentum in the Flats East Bank, Ohio City, and University Circle districts.
• Cincinnati: Rapid conversion of historic Over-the-Rhine buildings into mixed-use and retail investments.
• Dayton: Logistics-driven warehouse boom near I-70/I-75 corridor.
• Akron: Downtown office and industrial redevelopment.
• Toledo: Growth in medical centers and waterfront commercial revitalization.
• Dublin: Surging demand for Class A office and multifamily properties in Bridge Park.

Across these hubs, 2025 brings resilient tenant demand, rising property valuations, and an active investment sales pipeline. This environment is highly favorable for commercial mortgage financing, given stabilized cap rates and increased lender competition.

Commercial Mortgage Loans: Key Features in Ohio (2025)

Commercial mortgages remain the backbone of CRE investing. Here’s what to know for 2025:

Need capital? GHC Funding offers flexible funding solutions to support your business growth or real estate projects. Discover fast, reliable financing options today!

Test Your Expertise: The Complexities of the 1031 Exchange

As a sophisticated real estate investor, you understand that the 1031 Exchange is a cornerstone strategy for tax deferral and wealth accumulation. But beyond the basics, the intricacies of the 1031 Exchange rules can pose significant challenges. This quiz is designed to test your in-depth knowledge and highlight critical nuances that separate casual investors from true experts in 1031 Exchange transactions.

Instructions: Choose the best answer for each question.

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Page 1 of 5

Question 1: Understanding "Like-Kind" in a 1031 Exchange

Which of the following scenarios most likely qualifies as a like-kind property exchange under IRS Section 1031, allowing for 1031 Exchange tax deferral?

a) An investor exchanges a portfolio of publicly traded REIT stocks for a commercial retail building. b) An investor exchanges their primary residence, used for personal living for 15 years, for a duplex intended for rental income. c) An investor exchanges raw land held for appreciation in Texas for a stabilized apartment complex in Florida, both held for investment. d) An investor exchanges a classic car collection (personal property) for a single-family rental home (real property).

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Question 2: Navigating the 45-Day Identification Period for a 1031 Exchange

An investor sells a multi-family property on June 15th for a 1031 Exchange. According to the strict timelines, by what date must they identify their replacement properties to comply with the 1031 Exchange requirements?

a) July 30th of the same year, as the 45-day period includes weekends and holidays. b) August 29th of the same year, allowing for an extra 45 days if needed. c) December 12th of the same year, aligning with the 180-day completion period. d) January 1st of the following year, if they plan to file for an extension.

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Question 3: The Role of a Qualified Intermediary (QI) in a 1031 Exchange

Why is the engagement of a Qualified Intermediary (QI) absolutely critical for the validity of a 1031 Exchange?

a) The QI provides investment advice and helps the investor choose the best replacement property for their 1031 Exchange strategy. b) The QI acts as a liaison with the IRS, directly negotiating tax liabilities related to the 1031 Exchange process. c) The QI holds the proceeds from the relinquished property's sale, preventing the investor from having "constructive receipt" of funds, which would invalidate the 1031 Exchange. d) The QI provides legal and tax advice to ensure the 1031 Exchange is perfectly compliant

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Question 4: Understanding "Boot" and its Impact on a 1031 Exchange

An investor sells a commercial building with $500,000 in equity for a 1031 Exchange. They purchase a replacement property for $450,000, effectively reducing their debt by $50,000. What is the tax implication of this scenario within the 1031 Exchange framework?

a) The entire 1031 Exchange is disqualified because the investor "traded down" in value. b) The $50,000 in reduced debt is considered "boot" and will be immediately taxable as partial gain in this 1031 Exchange. c) There are no immediate tax implications, as the primary goal of the 1031 Exchange is only about the "like-kind" nature of the properties. d) The investor can defer the $50,000 as long as they pay off other personal debts with the funds, still qualifying for a full 1031 Exchange.

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Question 5: Advanced 1031 Exchange Strategies & Flexibility

An investor aims to sell a highly appreciated single-tenant retail property and replace it with multiple smaller, diversified multi-family units to spread risk. Which of the following 1031 Exchange identification rules best allows for this diversification strategy, maintaining eligibility for a 1031 Exchange?

a) The "Three Property Rule," where the investor can identify up to three properties of any value, regardless of the relinquished property's value, for their 1031 Exchange. b) The "200% Rule," allowing identification of any number of properties, provided their aggregate fair market value does not exceed 200% of the relinquished property's value for the 1031 Exchange. c) The "95% Rule," which states that if more than three properties are identified, the investor must acquire at least 95% of the aggregate value of all identified properties to qualify for the 1031 Exchange. d) All of the above are valid identification rules within a 1031 Exchange, offering flexibility for various investment strategies.

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The Ultimate DSCR Loan for Rental Property Quiz

Are you looking to expand your real estate investment portfolio? A DSCR loan might be the perfect tool to help you achieve your goals without relying on traditional income documentation. Test your knowledge with this quiz to see if you're ready to master the intricacies of a DSCR loan for rental property.

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Page 1 of 5

What is the primary factor a lender considers when approving a DSCR loan for rental property? A) The borrower's personal income and debt-to-income (DTI) ratio. B) The borrower's credit score and employment history. C) The property's potential rental income compared to its monthly expenses, known as the Debt Service Coverage Ratio. This is the key metric for a DSCR loan for rental property eligibility and approval. D) The total value of the borrower's existing investment properties and personal savings.

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How does a DSCR loan for a rental property differ from a conventional mortgage for a personal residence? A) A conventional mortgage requires a DSCR calculation, whereas a DSCR loan for a rental property does not. B) A DSCR loan for a rental property primarily focuses on the property's cash flow, allowing investors to qualify without traditional income verification, unlike a conventional mortgage which is based on personal income and liabilities. C) A conventional mortgage has a higher interest rate and stricter requirements than a DSCR loan for a rental property. D) A DSCR loan for a rental property is only available for commercial properties, not residential rental properties.

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What is an ideal Debt Service Coverage Ratio (DSCR) for a lender when evaluating a DSCR loan for a rental property? A) A DSCR of 0.75, indicating the property generates 75% of the income needed to cover its debt service. B) A DSCR of 1.00, meaning the property's income exactly equals its debt service. C) A DSCR of 1.25 or higher, as this indicates the property's income is greater than its expenses, making it a strong candidate for a DSCR loan for a rental property and providing a buffer for unexpected costs. D) A DSCR of 2.00, which is the standard minimum for all investment properties, regardless of location or market conditions.

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Which of the following expenses are typically included in the calculation of the Debt Service Coverage Ratio for a DSCR loan for a rental property? A) The property's mortgage payment (principal and interest), property taxes, and insurance, which are the core components used to determine if the property can support the debt. B) The property's mortgage payment, property taxes, insurance, and the borrower's personal credit card debt. C) The property's monthly rental income and all utility bills, regardless of who pays them. D) Only the principal and interest payment of the loan, as other expenses are not considered in a DSCR loan for a rental property calculation.

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Who would most benefit from using a DSCR loan for a rental property? A) A first-time homebuyer with a W-2 salary and a high debt-to-income ratio, who is looking to purchase a primary residence. B) A seasoned real estate investor with multiple properties who wants to expand their portfolio without using personal income to qualify, making a DSCR loan for a rental property the ideal financing solution for their needs. C) Someone looking to finance a primary residence with a low down payment and a government-backed loan. D) An individual with a very low credit score who cannot qualify for any other type of loan.

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• Loan Amounts: $500,000 to $30,000,000+
• Typical LTV: Up to 75% for stabilized properties
• Interest Rates: Fixed rates from 6.10% – 7.45% (as of Q1 2025), depending on property and sponsor strength
• Amortization: 20- to 30-year schedules
• Loan Terms: 5, 7, 10 years (balloon at maturity), or fully amortizing options
• Recourse: Both recourse and non-recourse available
• Property Types: Retail centers, office buildings, industrial/warehouse, medical offices, and multifamily (5+ units)

Choose Commercial Mortgages For:

• Acquisition of stabilized CRE assets
• Refinancing to pull out equity or secure better terms
• Portfolio expansion across Ohio’s growing metro markets

Top Ohio CRE Lenders (2025)

• Huntington National Bank: Ohio’s largest regional, with deep multifamily and office experience.
• Fifth Third Bank: Excellent for retail, mixed-use, and medical office deals across major cities.
• KeyBank Real Estate Capital: Offers full CRE product suite with local underwriters and competitive rates.
• First Federal Lakewood: Strong choice for small-to-mid-balance ($500K-$5M) commercial mortgages, especially in Cleveland/Akron.
• PNC Real Estate: National programs for large owners, and a local team in Columbus/Cincinnati.
• CIT (a division of First Citizens Bank): Active SBA 504/7a and conventional commercial lending throughout Ohio.

Lender choice will depend on property type, loan size, and sponsor profile. Strong relationships with regional banks remain a huge advantage for speed and flexibility in 2025.

Main Commercial Districts for Investment in Ohio

1. Easton (Columbus): Premier office, retail, and hospitality zone.
2. Downtown Cleveland & Flats East Bank: Revitalized riverfront office and mixed-use developments.
3. Over-the-Rhine (Cincinnati): Historic and trendy, ideal for boutique hotels and retail conversions.
4. University Circle (Cleveland): Medical, education, and multifamily-focused investments.
5. Bridge Park (Dublin): Hot spot for new Class A office and luxury apartments.
6. I-75 Logistics Corridor (Dayton/Toledo): Continued industrial and last-mile warehouse investment.
7. Polaris Parkway (Columbus): Strong demand for suburban corporate office and flex space.

Ohio Commercial Mortgage Application Process: Step-by-Step (2025)

1. Initial Consultation: Discuss goals and property type with your chosen lender or mortgage broker. Secure a pre-qualification letter.
2. Loan Application Submission: Complete lender application with business financials, property operating numbers, and sponsor background.
3. Document Collection: Prepare property rent roll, trailing 12-month profit/loss statements, purchase agreements, entity docs, and borrower resume.
4. Property Appraisal & Site Visit: Lender orders MAI appraisal and conducts physical inspection.
5. Credit Underwriting: Lender reviews debt service coverage (DSCR), credit, property condition, and background checks.
6. Conditional Commitment: Lender issues LOI/term sheet with final loan amount, rates, and terms.
7. Legal, Title & Escrow: Engage real estate attorney, order title search and survey. Negotiate final loan documents.
8. Closing & Funding: Wire equity, fund the loan, and receive closing documents. Property ownership transfers or refinance completes.

This process typically takes 45 to 90 days. Working with experienced local counsel and mortgage brokers can accelerate approvals in Ohio’s fast-moving 2025 market.

Ohio Commercial Mortgage Success Stories (2025)

• Medical Office Acquisition, Columbus: An investor secured a $2.75M commercial mortgage from KeyBank for a stabilized, 18,000 SF medical center in Easton. 10-year term, 6.35% fixed rate, 25-year amortization, 70% LTV.
• Retail Center Refinance, Cleveland: The owners of a 38,000 SF neighborhood shopping center in University Circle refinanced their mortgage with First Federal Lakewood: $4.1M, 7-year balloon, 6.70% rate, cash-out proceeds used to upgrade property façade and tenant spaces.
• Multifamily Portfolio, Cincinnati: Using Huntington National Bank, a local sponsor refinanced 92-units across OTR with $5.3M, fixed rate at 6.15% for 12 years, interest-only first year, allowing for capital improvement reserve for further rent growth.
• Warehouse Acquisition, Dayton: A family partnership purchased a 52,000 SF warehouse using Fifth Third Bank: $1.8M, 70% LTV, 20-year amortization, with flexibility for early payoff after year 5.

2025 Lending Strategies for Ohio CRE Investors

• Seek pre-approvals to lock favorable rates amid fluctuating mid-2025 benchmarks.
• Leverage lender relationships for better terms on properties in opportunity zones and qualified business districts.
• Consider non-recourse options with strong property DSCR (1.35x+).
• Plan for refinancing if acquiring property with physical or occupancy challenges; value can be unlocked post-stabilization.
• Use local mortgage brokers for access to non-bank lenders and private debt funds targeting Ohio CRE deals.

Conclusion: Capitalize on Ohio’s CRE Financing Landscape

✅ Small Business Resources 

• SBA – Small Business Administration
  https://www.sba.gov

• SCORE Mentors (Free Mentoring & Workshops)
  https://www.score.org
• Small Business Development Centers (SBDC)
  https://americassbdc.org

Are You an SBA Real Estate Loan Expert?

Test your in-depth knowledge on using SBA Loans for owner-occupied commercial Real Estate acquisition. These questions delve into the critical details that can impact your business's growth and financial strategy.

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Page 1 of 5

For an existing commercial property, what is the minimum owner-occupancy percentage required for an SBA 7(a) real estate loan, and does this specific scenario qualify?

A manufacturing company plans to acquire a 30,000 sq ft industrial real estate facility using an SBA 7(a) Loan. The company initially needs 18,000 sq ft for its operations and intends to lease out the remaining 12,000 sq ft.

A) 60%; Yes, it qualifies. B) 51%; Yes, it qualifies. C) 75%; No, it does not qualify. D) 60%; No, it does not qualify, as they are leasing out a portion.

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Which of the following sets most accurately represents additional cost categories that can typically be financed within an SBA 504 Loan for a commercial real estate project?

Hint: Beyond the straightforward purchase of a commercial real estate property, an SBA 504 Loan is highly effective for comprehensive projects.

A) Business inventory, working capital, and employee salaries. B) Building renovations, long-term machinery essential to operations within the property, and soft costs like architectural fees. C) Advertising expenses, short-term equipment leases, and utility deposits. D) Personal real estate investments, vehicles for personal use, and stock market investments.

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Between an SBA 7(a) Loan and an SBA 504 Loan, which program generally offers the lowest typical borrower down payment for a commercial real estate acquisition, and what is that common minimum percentage for established businesses?

A highly profitable professional services firm in a competitive market wants to purchase its office real estate with minimal upfront capital. The firm's owners prioritize cash flow and liquidity.

A) SBA 7(a) Loan; 15% B) SBA 504 Loan; 10% C) SBA 7(a) Loan; 5% D) SBA 504 Loan; 20%

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For new construction, what is the initial minimum owner-occupancy percentage required, and what is the maximum timeframe to meet the full owner-occupancy threshold, for an SBA Real Estate Loan?

A fast-growing tech startup plans to construct a new 50,000 sq ft headquarters using an SBA Loan. They will immediately occupy 35,000 sq ft and have a definitive plan to occupy the remaining 15,000 sq ft within two years as their team expands.

A) Initial 51%, full 80% within 5 years. B) Initial 60%, full 80% within 3 years. C) Initial 75%, full 100% within 1 year. D) Initial 51%, full 100% within 2 years.

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What is this crucial requirement, and what fundamental principle does it underscore for the lender?

When securing an SBA Loan for a commercial real estate purchase, principal owners with a 20% or greater ownership stake are almost universally required to provide a specific type of assurance beyond the collateral of the real estate itself.

A) A fixed-rate interest payment commitment, demonstrating long-term stability. B) A first-lien position on all personal assets, ensuring full recovery. C) A personal guarantee, signifying the owners' personal commitment to loan repayment. D) A business plan with projected revenue growth of at least 15% annually, showing future viability.

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Ohio’s 2025 commercial real estate scene offers compelling opportunities for local and national investors, with a robust blend of property types and thriving urban districts. Securing the right commercial mortgage is critical for scaling your portfolio, maximizing cash flow, and accessing Ohio’s strong rental and user demand. Whether you’re acquiring, refinancing, or expanding your CRE holdings, align with trusted lenders and stay informed to achieve investment success this year.

✅ Real Estate Investor Resources

• AirDNA (Short-Term Rental Data)
  https://www.airdna.co

• Rentometer (Rent Comps)
  https://www.rentometer.com
• Zillow Research & Data
  https://www.zillow.com/research

DSCR Loan IQ Quiz!

Test your knowledge of Debt Service Coverage Ratio (DSCR) loans!

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Page 1 of 3

What is the primary factor a lender focuses on when approving a DSCR loan for an investment property? a) The borrower's personal debt-to-income (DTI) ratio b) The property's ability to generate enough income to cover its mortgage payments c) The borrower's credit score history over the past 10 years d) The total number of investment properties the borrower already owns

Page 2 of 3

If a property has a Net Operating Income (NOI) of $5,000 per month and its total monthly debt service (PITI) is $4,000, what is its DSCR? a) 0.8x b) 1.0x c) 1.25x d) 5.0x

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Which type of borrower most commonly benefits from using a DSCR loan? a) First-time homebuyers purchasing a primary residence b) Investors with a strong W-2 income and minimal tax deductions c) Self-employed individuals or those with complex income who want to avoid traditional income verification d) Homeowners looking to refinance their primary residence for a lower interest rate

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For personalized guidance or to start your next Ohio CRE loan application, connect today with a local mortgage advisor or preferred lender.

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Contact GHC Funding Today. Main: 833-572-4327 Email: sales@ghcfunding.com

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