The Deal
Commercial Lending Solutions arranged a $15.5M permanent loan for the acquisition of a nnn restaurant ground lease in Nashville, TN. The property featured a long-term absolute triple-net ground lease with a national quick-service operator, structured with scheduled rent bumps every five years providing built-in income growth. The tenant had operated at this location for over eight years with a strong sales history, and the lease carried a remaining term exceeding 15 years, offering the investor exceptional cash flow visibility and minimal management responsibility.
The Challenge
The borrower was completing a 1031 exchange with an identification period set to expire in 45 days. Moving that quickly from property identification to a closed loan required a lender who could issue term sheets, complete appraisals, and coordinate title work on an accelerated schedule. The ground lease structure added complexity because many institutional lenders require lengthy internal review for leasehold financing, which would have made the exchange deadline impossible to meet through conventional banking channels.
The Solution
Trevor Damyan at Commercial Lending Solutions identified a lender specializing in net-lease ground lease financing with a streamlined approval process for investment-grade quick-service tenants. The loan was structured at 65% LTV with a 25-year amortization schedule and a 10-year fixed rate locked at application. The lender's familiarity with ground lease collateral allowed underwriting to proceed in parallel with title review, compressing the timeline without sacrificing loan terms. A rate lock at application protected the borrower from any market movement during the close.
The Outcome
The loan closed in 28 days, preserving the 1031 exchange and deferring a substantial capital gains tax liability. The borrower secured a competitive fixed rate reflecting the investment-grade credit quality of the tenant, with amortization structured to produce strong cash-on-cash returns from day one. The long-term fixed rate and predictable rent bumps aligned with the investor's hold strategy, providing a reliable income stream for a decade without refinancing risk. The transaction demonstrated how specialized net-lease lenders can execute quickly when a deal is well-structured and properly presented.