Net Lease Financing

Single Tenant Net Lease (NNN) Financing

Net lease financing covers acquisition and refinance loans for single tenant NNN properties occupied by national credit tenants. Programs include bank STNL loans from $750,000 to $8 million, CMBS conduit loans for larger properties, and life insurance company permanent financing for investment-grade tenants. CLS CRE has active relationships with dedicated net lease lenders who understand corporate lease structures, sale-leaseback transactions, and credit tenant underwriting.

Apply for Net Lease Financing →

Key Features

Net Lease Financing at a Glance

Loan Amount

$750K to $100M+

Term

5 to 25 Years

Rates

CMT + 190 bps to 7.50%

Ltv

Up to 75% LTV

Amortization

25 to 30 Years

Recourse

Non-Recourse Available

Overview

Single Tenant Net Lease (NNN) Commercial Financing

The NNN financing market is divided by loan size. Smaller STNL deals under $8 million are typically best served by dedicated bank net lease programs that offer CMT-based pricing, flexible prepayment, and non-recourse structures starting at 60% LTV. Mid-size deals from $5 million to $20 million attract both CMBS conduits and life insurance companies, with CMBS offering higher leverage and life companies offering tighter spreads for trophy assets. Large portfolio transactions and institutional NNN properties access life company and CMBS executions with the most competitive long-term fixed rates. Common tenant categories include quick service restaurants, pharmacy chains, dollar retailers, auto parts stores, convenience stores, and other 500-plus location national brands.

Lender Sources

Banks with Dedicated STNL Programs
CMBS Conduit Lenders
Life Insurance Companies
Debt Funds (Bridge)
SBA-Approved Lenders (Owner-Occupied NNN)

Ideal For

QSR and fast casual restaurant NNN acquisitions
Pharmacy and drug store NNN refinances
Dollar store and value retail NNN portfolios
Auto parts and service NNN properties
1031 exchange NNN acquisitions
Sale-leaseback transactions with corporate tenants
Multi-property NNN portfolios

Net Lease Financing by City

Bridgeport-Stamford, CT

Hilton Head Island, SC

Related Property Types

Net Lease Financing are available for all major commercial property types. Explore financing by property category.

FAQ

Net Lease Financing FAQ

Net lease financing refers to commercial real estate loans secured by properties where tenants pay some or all operating expenses (taxes, insurance, and maintenance) in addition to base rent. Single-tenant net lease properties with long-term leases to investment-grade or nationally recognized tenants are among the most sought-after collateral in commercial lending, commanding the most competitive rates and highest leverage in the market.

Single-tenant NNN properties with long-term leases (10 to 25 years) to investment-grade or nationally recognized tenants are the most financeable. Top examples include pharmacies, fast food chains, dollar stores, convenience stores, auto parts retailers, medical users, and bank branches. Triple net (NNN) leases are preferred over double-net (NN) because the tenant absorbs all operating expenses.

Net lease loan rates range from 5.00% to 6.75% for investment-grade single-tenant NNN assets with long lease terms, making them among the most competitively priced deals in commercial real estate. Rates are driven by tenant credit rating, remaining lease term, and market location. Life insurance companies and CMBS lenders are the most competitive sources.

Net lease properties with investment-grade tenants and long lease terms can achieve up to 70 to 75 percent LTV from CMBS lenders and 60 to 65 percent LTV from life insurance companies. Higher leverage is justified by the predictable, bond-like cash flows from creditworthy net lease tenants. Below-investment-grade tenants or shorter remaining lease terms are typically capped at 55 to 65 percent LTV.

Remaining lease term is one of the most critical underwriting factors. Most lenders require the lease to extend at least 5 to 7 years beyond loan maturity. A property with 20 or more years of remaining term commands the most competitive financing. As lease terms shorten below 10 years, lenders apply risk premiums and reduce maximum LTV. Properties with fewer than 5 years remaining may require bridge financing or a lease renewal as a condition of permanent financing.

Life insurance companies offer the most competitive rates for long-term investment-grade net lease deals, typically 5.00% to 6.25% for 10 to 25-year terms. CMBS conduits offer higher leverage (up to 75 percent LTV) for both investment-grade and sub-investment-grade tenants. Commercial banks are competitive for shorter lease terms and local or regional credit tenants. Commercial Lending Solutions has direct allocation relationships with the top life company and CMBS net lease desks nationally.

Ready to Get Net Lease Financing?

Contact Commercial Lending Solutions for a free, no-obligation quote on net lease financing. We respond within 24 hours.

Apply for Financing →

Call: 310.708.0690 Text: 310.758.3064

Single Tenant Net Lease (NNN) Financing

Net Lease Financing at a Glance

Single Tenant Net Lease (NNN) Commercial Financing

Lender Sources

Ideal For

Net Lease Financing by City

Related Property Types

Net Lease Financing FAQ

Ready to Get Net Lease Financing?

Weekly Market Intelligence

Before You Go…

Thank You!