$1.5M NNN QSR Acquisition | Commercial Lending Solutions 

$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.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL program 6.25 to 6.50 percent fixed, or CMT plus 225 to 275 basis points floating $1.5M at 70 percent LTV equals roughly $2.14M asset value Quickest closing timeline, typically 30 to 45 days; recourse standard on deals under $2M; strong preference for investment-grade tenants and lease terms of 10 years or longer
Life insurance company balance sheet 6.40 to 6.75 percent fixed $1.5M at 65 to 70 percent LTV Patient capital; longer diligence timeline but higher leverage available for A-credit tenants; non-recourse possible at lower LTV; typically 60 to 90 day close
Regional credit union with CRE appetite 6.35 to 6.65 percent, often tied to prime or SOFR plus spread $1.5M at 60 to 70 percent LTV Strong community focus; relationship-driven underwriting; recourse typical; excellent for repeat sponsors or local operators; 45 to 60 day timeline
CMBS conduit lender 6.50 to 7.00 percent fixed $1.5M typically pooled with other loans; minimum pool size $50M to $100M Non-recourse standard; longer closing window (60 to 120 days); lower probability for single-loan financing at this size unless part of multi-property portfolio; strict underwriting on tenant and lease quality

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.

$1.5M NNN QSR Acquisition FAQ

Most lenders will offer 70 to 75 percent LTV for A or A-minus credit tenants with lease terms of 10 years or longer, translating to a $2.0 to $2.14 million stabilized asset value. Regional or smaller-format tenants may see 60 to 70 percent LTV. Investment-grade credit rating and lease longevity are the primary drivers of leverage at this ticket size.
Non-recourse is available from life insurance companies and CMBS conduit lenders, typically at LTV of 60 to 65 percent or lower depending on tenant credit and lease term. Bank lenders at this size almost always require personal recourse, though some will negotiate carve-outs for environmental or fraud issues.
Bank lenders close in 30 to 45 days with streamlined STNL programs; life insurance companies and credit unions typically need 60 to 90 days; CMBS conduit lenders may require 60 to 120 days depending on pool structure. Full financial statements and tax returns for the sponsor and any guarantor are usually required within the first week.
Most sponsors at this size prefer fixed rates to match the long-term stability of the triple-net lease, with 6.25 to 6.75 percent all-in being market across national banks and life companies. Floating-rate options tied to CMT or SOFR are available at 25 to 50 basis points lower but carry rate-cap requirements that add complexity for a relatively small loan.
Yes, substantially. A 15 to 20 year lease will receive 6.25 to 6.40 percent and 72 to 75 percent LTV from most banks, while a 7 to 10 year lease may see 6.50 to 6.75 percent and 65 to 70 percent LTV. Lease length is often the single most important variable after tenant credit for pricing and leverage decisions at this ticket size.


Get a Quote on Your $1.5M Deal

Tell us about your transaction. We will run it past lenders that actively fund this size and product type and send back terms within 48 hours.

Apply for Financing →
Or call us: 310.708.0690

Weekly Market Intelligence

Rate updates, deal insights, and capital markets analysis. One email per week. Unsubscribe anytime.

No spam. No selling your data. Just market intelligence from a working broker.

Need financing? Apply in 2 minutes. Response within 24 hours.
Apply Now →
📈

Before You Go…

Get matched with the right lender from our network of 1,000+ capital sources.

Or call us: 310.708.0690

No spam. Unsubscribe anytime.