Case Study: $18M Multi-State Net-Lease Portfolio CMBS Loan

The Deal That Walked in the Door

We are Commercial Lending Solutions, a commercial mortgage brokerage based in Los Angeles, and this deal brought us a sponsor holding a nine-property net-lease portfolio spread across six states, from a Southern California industrial tenant to Midwest and Northeast retail and industrial users. Rather than financing each property separately with a different regional lender, the sponsor wanted one facility, one rate, and one closing covering the entire portfolio.

Assembling a single CMBS conduit loan across nine properties in six different states meant coordinating title, survey, and local counsel requirements state by state while keeping the whole portfolio moving toward one closing date. Commercial Lending Solutions specializes in CMBS conduit financing and multi-state net-lease portfolio loans for sponsors nationwide.

What Made It Hard

• Nine properties across six states in one closing. Each property required its own single-purpose borrowing LLC, its own local title and survey work, and its own state-specific security instrument, all of which had to come together simultaneously for the loan to fund.
• A varied tenant roster requiring individual underwriting. With tenants spanning industrial users, a specialty grocer, and building materials suppliers across the portfolio, each property's lease terms and credit profile had to be underwritten on its own merits even while being pooled into a single loan.
• Coordinating a Limited Recourse Guaranty across a multi-entity structure. With the sponsor's personal guaranty and his family trust's guaranty both required across every borrowing entity in the portfolio, the guaranty documentation had to tie cleanly back to each individual property-level LLC.

How We Ran the Process

Trevor Damyan, a California-licensed real estate broker (CA DRE 02244836), placed the portfolio loan with a national CMBS conduit lender, with the loan agreement dated November 1, 2021:

• $18,000,000 secured across nine single-tenant net-leased properties in California, Connecticut, Illinois, Minnesota, Tennessee, and Utah
• 3.91% fixed for the full term, maturing November 6, 2031
• Non-recourse financing with a Limited Recourse Guaranty covering standard carveout events, executed by the sponsor and his family trust
• Separate single-purpose LLC borrowing entities for each property in the portfolio, isolating each asset's liabilities from the others
• State-specific security instruments recorded against each property individually, coordinated to close on the same date across all six states

The portfolio closed with all nine properties financed under a single facility, giving the sponsor one blended rate and one closing date across a geographically diverse net-lease portfolio rather than six separate regional financings.

"Nine properties, six states, one closing date. The only way that works is running every state's title and local counsel workstream at the same time instead of waiting on each other, so no single jurisdiction becomes the bottleneck for the whole portfolio."

Why We Won This One

Coordinating nine properties across six states into a single CMBS closing came down to running the title, survey, and local counsel workstreams in parallel rather than sequentially, so no single state's requirements held up the entire portfolio. Structuring each property under its own single-purpose LLC while keeping the sponsor's guaranty consistent across all of them gave a national CMBS conduit lender the isolation it needed at the asset level without slowing the deal down.

Locking a single 3.91% fixed rate across the whole portfolio, rather than negotiating separate pricing property by property, gave the sponsor cost certainty on a facility that would otherwise have required six different regional lender relationships.

Is This Structure Right for Your Deal?

If you own a multi-state net-lease portfolio and want one facility instead of coordinating separate regional financings, we can help you build a CMBS conduit execution that works across every property. We arrange permanent loans from a network of more than 1,000 capital sources.

Apply for financing or call us at 310.708.0690 to talk through your portfolio.

Trevor Damyan

Commercial Mortgage Broker, Commercial Lending Solutions | CA DRE 02244836

Trevor Damyan is a commercial mortgage broker at Commercial Lending Solutions with a background in structured finance at CBRE and Marcus and Millichap Capital Corporation. He specializes in bridge loans, construction financing, SBA programs, DSCR loans, and complex capital structures for investors and developers across all 50 states.

View full profile →