The Deal
Commercial Lending Solutions arranged a $7.1M permanent portfolio loan for a dollar store portfolio (3 locations) in Columbus, OH. The portfolio consisted of multiple triple-net properties leased to nationally recognized retail and service tenants, each with long remaining lease terms and scheduled rent bumps. The borrower had assembled the portfolio over three years through 1031 exchanges and direct acquisitions, and was seeking to consolidate individual property loans into a single portfolio financing with improved economics and simplified debt management.
The Challenge
Financing a multi-state net-lease portfolio created structural complexity around cross-collateralization, title insurance requirements across multiple jurisdictions, and the question of whether to finance individually or as a portfolio. Individual financing would have produced cleaner title but required managing multiple lender relationships and produced less favorable blended rates. Cross-collateralized portfolio financing offered better pricing but raised concerns about flexibility if the borrower wanted to sell individual assets in the future without triggering full loan payoff requirements.
The Solution
Trevor Damyan at Commercial Lending Solutions structured a portfolio loan at 55% LTV blended across all properties, with individual release provisions allowing each asset to be sold and released from collateral upon payment of a predetermined release premium. This gave the borrower the benefit of portfolio pricing while preserving the optionality to monetize individual assets on their own timeline. A single lender serviced the entire loan, consolidating reporting requirements and simplifying the borrower's balance sheet management significantly.
The Outcome
The portfolio loan closed with a blended rate below what any individual property could have achieved on its own, reflecting the diversification benefit that the lender recognized across the tenant mix and geographic spread. The borrower simplified from multiple lenders to a single loan servicer, reducing administrative overhead and improving financial reporting clarity. The release provisions provided the flexibility needed for future asset dispositions without forcing a full refinance event. Within 18 months, the borrower successfully sold two properties from the portfolio using the release mechanism, recycling capital into higher-returning acquisitions.