Ohio Commercial Real Estate Loan for Investors in 2025 Now

Commercial Real Estate Loans in Ohio: 2025 Comprehensive Guide

Ohio’s commercial real estate market is thriving in 2025, powered by robust urban revitalization, expanding logistics corridors, and increased investor attention to both larger metros and secondary cities. Whether you’re seeking to reposition an office property in downtown Columbus or acquire a multifamily asset in Cleveland, understanding the landscape of commercial mortgages in Ohio is essential to success.

Ohio’s Prime Commercial Real Estate Markets

• Columbus – Arena District: Known for new office towers, mixed-use projects, and dynamic entertainment investments.
• Cleveland – Flats East Bank: Rapidly transforming with hospitality and multifamily investments near Lake Erie.
• Cincinnati – Over-the-Rhine: Historic buildings and new retail concepts continue to attract commercial capital.
• Dayton – Webster Street Market District: Industrial conversions and distribution hubs on the rise.
• Toledo – Downtown Waterfront: Investor focus on mixed-use and adaptive reuse projects along the Maumee River.
• Akron – Main Street South: Office-to-multifamily conversions and specialty healthcare space are growing trends.
• Dublin Innovation District: Tech offices and new commercial campuses are driving suburban demand.

Types of Commercial Real Estate Loans in Ohio (2025)

1. Commercial Mortgage Loans

Ohio-based investors and developers frequently utilize commercial mortgages to acquire, refinance, or cash-out equity from stabilized properties. These fixed- and floating-rate loans are best suited for income-producing assets such as office buildings, retail centers, industrial warehouses, and mixed-use properties.

• Typical Loan Amounts: $500K – $50M+
• Terms: 5 to 30 years (10-year term, 25-year amortization most common)
• Interest Rates (2025): 6.20% – 7.25% (dependent on deal structure and asset class)
• LTV: Up to 75% (sometimes higher for multifamily)

2. Bridge Loans

Bridge loans fill the financing gap for Ohio investors acquiring or repositioning properties that may not yet qualify for traditional permanent mortgages. They are ideal for value-add plays, lease-up strategies, or acquisition of distressed assets in neighborhoods like Cleveland’s Opportunity Corridor or Cincinnati’s revitalizing districts.

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: $1M – $20M
• Terms: 12–36 months
• Rates (2025): 8.5% – 10.00%
• LTV: Generally 65% – 80%

3. Construction Loans

Ohio’s ongoing urban and suburban development activity makes construction financing a crucial tool. These short-term loans finance ground-up builds of multifamily, office, hotel, and industrial assets, particularly in growth hubs such as Dublin and the Cleveland suburbs.

• Typical Sizes: $2M – $100M
• Terms: 18–36 months, interest-only
• Rates (2025): 7.50% – 8.75%

4. Multifamily Financing

With demand for rental housing at record highs in cities like Columbus and Toledo, multifamily lending is extremely competitive. Ohio investors leverage agency (Fannie Mae, Freddie Mac), bank, and credit union programs for properties with as few as 5 units up to large apartment complexes and portfolios.

• Loan Amounts: $700K – $50M+
• Terms: 5–30 years (depending on lender and property)
• Rates (2025): 5.80% – 6.50% (agency rates often lowest)

Top Ohio Commercial Real Estate Lenders (2025)

1. Huntington National Bank: Leading Ohio-based lender for office, industrial, and retail across Ohio’s metros.
2. PNC Real Estate: Extensive local underwriting, strong presence in greater Cincinnati, Columbus, and Cleveland.
3. KeyBank Real Estate Capital: National platform with deep Ohio roots; strong on agency multifamily and affordable housing.
4. First Federal Lakewood: Preferred by local investors for nimble loan approvals and flexible bridge/construction offerings.
5. Ohio Capital Corporation for Housing: Specializes in affordable and workforce housing loans, particularly multifamily deals.
6. Liberty Bank N.A.: Highly active in suburban and secondary markets for investor and owner-occupied properties.

Ohio Commercial Real Estate Loan Application Process: Step-by-Step (2025)

1. Assess Your Project: Define location, asset class, business plan (stabilized, value-add, construction), and required loan size.
2. Pre-Qualification: Meet with Ohio lenders to review borrowing requirements and indicative rates/terms based on your property and financials.
3. Gather Documentation:
   • Property rent rolls and operating statements (2–3 years)
   • Borrower/entity formation docs
   • Personal and business financial statements
   • Purchase or construction contracts (if applicable)
   • Appraisal or broker opinion of value
   • Business plan or pro forma (especially for value-add or construction)
4. Submit Loan Application: Complete application with chosen lenders (often can apply to several at once).
5. Loan Underwriting: Lender completes third-party reports (appraisal, environmental, engineering), reviews borrower credit and property cash flow.
6. Commitment Letter Issued: Once approved, review interest rate, terms, covenants, and closing costs.
7. Closing: Sign loan documents, fund required equity, and close the transaction (timing varies by loan type).

Ohio CRE Investor Success Stories (2025)

• Cincinnati Office Revitalization: An Ohio syndicate secured a $3.2M, 10-year fixed-rate commercial mortgage from KeyBank at 6.72% to refinance and upfit a Class B office in the Queen City Innovation District.
• Columbus Multifamily Acquisition: A local partnership acquired a 55-unit property in the Short North area with a $4.6M Freddie Mac loan from PNC, 5.90% rate, 30-year amortization, 75% LTV.
• Dayton Industrial Bridge Loan: Individual investor sourced a $1.8M, 24-month bridge loan through First Federal Lakewood at 9.1% to reposition a former plant into last-mile logistics, then refinanced into a permanent loan in under two years.
• Cleveland Hospitality Development: Hotel developer obtained a $5M construction loan at 8% (12-month interest-only) from Huntington National Bank to build a boutique hotel in the Flats East Bank, leveraging city and state development incentives.

2025 Ohio CRE Loan Market Outlook

✅ 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 investor appetite in both core and secondary commercial submarkets is set to remain robust throughout 2025. While interest rates remain elevated by historical standards, lenders are highly competitive for well-located, cash-flowing assets, and new incentive programs are driving further construction and adaptive reuse activity. With the state’s diversified economy, proximity to logistics routes, and demographic strength, Ohio continues to offer compelling opportunities for both new and seasoned commercial real estate investors.

Get Started with Ohio CRE Financing

✅ 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

Page 3 of 3

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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Whether it’s a 0K industrial acquisition in Dayton or a M multifamily project in Columbus, Ohio’s top lenders and market experts stand ready to support your next investment. Start by assembling your deal team and reaching out to local banks, agency lenders, or experienced CRE mortgage brokers familiar with specific submarkets in the Buckeye State.

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