Single Tenant Net Lease Bank Financing
CLS CRE has direct access to a national bank program built specifically for single tenant NNN acquisitions and refinances. Loans from $750,000 to $8 million or more, up to 70% LTV, CMT-based pricing, and non-recourse structures available starting at 60% LTV. This is one of the best-positioned STNL programs in the market for deals under $8 million.
Submit Your STNL Deal →STNL Bank Financing at a Glance
Why Bank Financing Works for STNL Under $8M
The STNL financing market is dominated by CMBS and life insurance companies for larger loans, but for deals in the $750,000 to $8 million range, bank execution frequently wins on pricing, speed, and flexibility. CMBS conduits carry fixed overhead that makes smaller deals less competitive. Life companies generally have $3 million to $5 million minimums and favor institutional-quality multi-tenant assets. A bank with a dedicated net lease division fills this gap with purpose-built programs for credit-tenant NNN properties.
CLS CRE has access to a national bank program that has been actively lending on STNL properties across all 50 states. The program is run by a team with deep net lease underwriting expertise. They understand lease structures, tenant credit profiles, and the sale-leaseback market in a way that generalist bank commercial real estate desks do not. The result is faster approvals, more certainty on pricing, and fewer surprises at closing.
Program Highlights
- National coverage, all 50 states
- Single tenant and select multi-tenant (up to 3) properties
- Single asset entity borrower structure
- Minimum 7 years of lease term remaining required
- 1.25x DSCR tested on 25-year amortization
- 0.50% origination fee
- Flexible prepayment step-downs
Best Fit For
- NNN acquisitions with corporate credit tenants
- Sale-leaseback transactions
- 1031 exchange acquisitions with tight timelines
- Refinances of existing STNL properties
- Investors with conservative leverage preferences
- Deals where prepayment flexibility matters
- Non-recourse seekers at or below 60% LTV
Which Tenants Qualify
The program targets corporate-guaranteed leases from national and regional brands with high credit quality, at or near investment grade, operating at least 500 locations. Below are the primary categories and representative brands the program actively finances.
Quick Service Restaurants
- Taco Bell
- McDonald's
- Burger King
- Wendy's
- Chipotle
- Starbucks
- Subway
- Chick-fil-A
- Sonic
- Panera Bread
- Domino's
- KFC / Popeyes
Pharmacy / Drug Store
- CVS Pharmacy
- Walgreens
- Rite Aid
Dollar / Value Retail
- Dollar General
- Family Dollar
- Dollar Tree
- Five Below
Auto Parts / Service
- AutoZone
- O'Reilly Auto Parts
- Advance Auto Parts
- Pep Boys
Gas / Convenience
- 7-Eleven
- Circle K
- Wawa
- Sheetz
Other Eligible Categories
- Planet Fitness / Anytime Fitness
- Sherwin-Williams
- Aspen Dental / dental chains
- DaVita Dialysis / healthcare chains
- FedEx / UPS stores
- Tractor Supply
- Other 500+ location national brands near investment grade
Not all brands are automatically approved. Tenant credit, lease structure, and market factors are reviewed on a case-by-case basis. Contact CLS CRE to confirm eligibility for your specific tenant.
Representative STNL Bank Program Terms
All terms are representative and subject to credit approval. Contact CLS CRE for a deal-specific quote.
| Term | Program Parameters |
|---|---|
| Geography | National (properties and sponsors) |
| Property Type | Single tenant NNN; selectively up to 3 tenants |
| Loan Amounts | $750,000 to $8 million or more |
| Borrower Entity | Single asset entity |
| Leverage | Up to 70% LTV/LTPP; up to 75% on a case-by-case basis |
| Minimum DSCR | 1.25x tested on a 25-year amortization schedule |
| Loan Maturity | Up to 10 years; minimum 7 years of lease term remaining required |
| Fixed Rate Term | Up to 5 years |
| Amortization | Up to 30 years (65% LTV maximum for 30-year AM) |
| Interest Rate | Corresponding CMT + 190 to 260 basis points |
| Prepayment | Flexible step-down options: 2,2,1,1,1 / 3,2,1,1,0 / 1,1,1,1,1 or negotiated |
| Origination Fee | 0.50% |
| Non-Recourse | Available selectively starting at 60% LTV |
| Tenant Credit | Corporate-guaranteed; at or near investment grade; 500+ locations |
Bank vs CMBS for STNL Under $8M
For smaller STNL deals, bank financing often delivers better execution than CMBS on multiple dimensions. Here is how the two stack up.
| Factor | Bank (This Program) | CMBS Conduit |
|---|---|---|
| Rate Pricing | CMT + 190 to 260 bps (competitive for this size) | Often wider spreads on small loans due to fixed securitization costs |
| Closing Timeline | 30 to 45 days typical | 60 to 90 days typical |
| Prepayment | Flexible step-downs (negotiated) | Defeasance or yield maintenance standard |
| Non-Recourse | Available at 60% LTV and below | Standard non-recourse with standard carve-outs |
| Loan Minimum | $750,000 | Typically $2M to $5M minimum for competitive execution |
| 1031 Exchange Fit | Strong fit due to faster closing | Timing can be tight with CMBS pipeline |
| Underwriting Flexibility | Case-by-case decision-making | Standardized conduit guidelines |
Deal in Action: NNN Restaurant Acquisition
The following is a representative closed transaction financed through this program. Borrower and property details are anonymized.
NNN QSR Sale-Leaseback — Route 66 Corridor, New Mexico
National QSR tenant operating under a 15-year corporate NNN lease with four 5-year renewal options. Sale-leaseback acquisition along a high-traffic retail corridor. Conservative leverage of 40% LTV, 30-year amortization, and a 2.08x debt service coverage ratio. Bank execution closed in under 40 days. Read the full case study →
STNL Bank Financing FAQ
Submit Your STNL Deal
CLS CRE has direct access to this program and active relationships across the STNL lending market. Submit your deal or call us to discuss. We respond within 24 hours.
Apply for STNL Financing →