$1.5 Million NNN QSR Acquisition Financing
By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions
A $1.5 million net lease acquisition on a single-tenant QSR property typically represents a smaller-ticket deal in the institutional STNL market, but one that attracts significant lender competition nationwide. At this loan size, buyers are usually 1031 exchange investors, owner-operators, or emerging sponsors looking to build a stabilized portfolio on modest leverage. Lenders across the capital stack, including national banks with dedicated STNL programs, regional credit unions, and life insurance companies, all actively pursue deals in this range because origination costs remain favorable relative to portfolio yield. Expect all-in rates in the 6.25 to 6.75 percent range, with LTV running 65 to 75 percent for investment-grade tenants and lease terms of 10 years or longer.
Get a Quote on Your $1.5M Deal →What a $1.5M NNN Acquisition Capital Stack Looks Like
At $1.5 million, the capital stack typically consolidates into a single lender or occasionally a co-lender structure, with national banks and life insurance companies accounting for the majority of volume. Lender selection hinges on tenant credit, lease length, property location, and whether the sponsor wants a fixed or floating rate product. Most sponsors at this ticket size prioritize speed and simplicity over rate optimization, meaning a bank with a streamlined STNL approval process often wins the deal.
Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.
Who Closes a $1.5M NNN Acquisition Deal
The typical $1.5 million STNL buyer is a 1031 exchange investor or small to mid-size sponsor with $500,000 to $3 million in liquid net worth and a track record of two to eight prior acquisitions. Many are owner-operators seeking to diversify away from operator risk or transition to passive income, while others are emerging firms building their first stabilized portfolio with institutional-grade tenants. These sponsors often prioritize tenant strength and lease stability over value-add upside, and they typically carry between 25 to 35 percent cash equity into the deal.
A Real $1.5M Example
A regional restaurant operator in the Sun Belt acquired a corporate-branded QSR on a 15-year triple-net lease in a Dallas suburban market for $2.14 million, financing $1.5 million through a national bank's STNL program at 6.40 percent fixed over 25 years. The tenant carried a B-plus credit rating with 12 years remaining on the initial term and two 5-year renewals, generating a 4.8 percent cash-on-cash return to the sponsor. The lender required personal recourse from the sponsor and issued a 25-year amortization with a 30-year balloon, closing in 38 days with minimal conditions. The deal performed on proforma, and the sponsor refinanced two years later at a lower rate, deploying the freed-up capital into a second acquisition in the same submarket.
Anonymized. All deal references protect borrower and lender identity.
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