$10M Dollar Store NNN Portfolio | Commercial Lending Solutions 
Loan Size Example

$10 Million Dollar Store NNN Portfolio Acquisition

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $10 million dollar store NNN portfolio nationwide typically comprises 8 to 15 single-tenant properties leased to investment-grade or BBB-rated dollar store operators, spread across secondary and tertiary markets from coast to coast. These deals attract national banks, life insurance companies, and CMBS conduit lenders because the tenant credit quality, long lease terms (8 to 12 years), and predictable cash flows support leverage in the 60 to 75 percent LTV range. Rates in the current environment run 6.25 to 6.75 percent depending on tenant rating, lease duration, and capital source. Typical cap rates on these portfolios fall in the 4.50 to 5.75 percent range, making them attractive to 1031 exchange buyers and institutional investors seeking stable, low-volatility income.

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Capital Stack

What a $10M Dollar Store NNN Portfolio Capital Stack Looks Like

Most $10 million dollar store NNN portfolios are funded by a single senior lender rather than a layered stack, because the collateral strength and tenant durability support competitive all-in debt costs. A national bank with a dedicated STNL program or a life insurance company typically wins the mandate based on pricing, loan structure flexibility, and non-recourse availability at reasonable LTV thresholds. Borrowers choose their lender partner based on recourse requirements, prepayment terms, and speed to close.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL program 6.25 to 6.50 percent fixed or CMT-based with 200 to 275 basis point spread $6M to $7.5M (60 to 75 percent LTV depending on tenant credit and lease term) Full non-recourse available at 60 to 65 percent LTV for BBB-rated or higher tenants; recourse carved-out for environmental and bankruptcy exclusions common; 3 to 5 year fixed rate or 5/1 ARM available; 30 year amortization standard
Life insurance company 6.35 to 6.65 percent fixed $6M to $8M (60 to 75 percent LTV) Prefers longer lease terms (10+ years); full non-recourse available; 30 to 35 year amortization available; longer funding timeline (45 to 60 days) but strong on yield; covenant package typically lighter than bank
CMBS conduit lender 6.40 to 6.75 percent fixed $6M to $7.5M (60 to 70 percent LTV, capped at loan-to-cost on seasoned portfolios) Non-recourse at lower LTV; shorter lease tail acceptable (5+ years remaining); conduit pricing reflects securitization structure; yield maintenance or defeasance prepayment typical
Credit union or regional bank (specialty STNL division) 6.15 to 6.40 percent fixed or CMT-based with 175 to 225 basis point spread $3M to $5M (smaller regional lenders often have per-deal cap; frequently co-lends with larger institution) Faster underwriting and closing (25 to 35 days); may require partial recourse or guarantor net worth minimum; amortization typically 25 to 30 years; limited to investment-grade or strong BBB tenants

Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.

Sponsor Profile

Who Closes a $10M Dollar Store NNN Portfolio Deal

The typical sponsor acquiring a $10 million dollar store NNN portfolio nationwide has $25 million to $75 million in net worth, has closed 15 to 40 single-tenant or small portfolio transactions, and is seeking either a refinance of existing scattered properties or a portfolio roll-up to consolidate smaller holdings into one securitized or bank-held package. Many of these sponsors are 1031 exchange buyers redeploying capital from prior sales, particularly life company buyers and REIT-adjacent investors seeking stable 5 percent to 5.5 percent current cash yields with minimal tenant interaction or capex obligations. Operating experience with credit analysis and lease auditing is expected; many sponsors have in-house or advisory team familiarity with dollar store operations, supply chains, and market penetration trends.

From the CLS CRE Pipeline

A Real $10M Example

CLS CRE arranged $9.8 million in senior financing for a 12-property dollar store portfolio across the South (Texas, Louisiana, Arkansas, Georgia) for a 1031 exchange sponsor with strong institutional relationships. The borrower had assembled the portfolio over 18 months, achieving a weighted-average lease term of 9.4 years and weighted-average tenant rating of BBB-plus. A national bank provided the full amount at 6.28 percent fixed, 30-year amortization, 65 percent LTV, and full non-recourse structure with standard exclusions. The deal closed in 38 days; the bank's appetite for portfolio STNL deals in secondary markets and confidence in the tenant's expansion plan into underserved rural submarkets drove competitive pricing and quick commitment. The borrower immediately refinanced one seasoned property into the portfolio structure, improving overall portfolio yield by 35 basis points.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$10M Dollar Store NNN Portfolio FAQ

Most lenders require BBB-minus or higher (S&P or Moody's equivalent) or issuer-level credit rating verification from industry databases. Some national banks and life companies will do full non-recourse at investment-grade tenants with 8 or more years of lease remaining; BBB-rated tenants typically need longer lease tails (9 to 10 years) and lower LTV (60 to 65 percent) to qualify for non-recourse. Recourse carved-outs for bankruptcy and environmental liability are standard regardless of tenant rating.
A portfolio with 10 to 12 years weighted-average lease remaining typically qualifies for maximum LTV (75 percent) and better pricing (tighter by 15 to 25 basis points) compared to portfolios with 6 to 8 years remaining. Lenders view longer lease terms as lower refinance or tenant turnover risk; below 5 years remaining, LTV often drops to 55 to 60 percent and pricing widens. Life insurance companies are most sensitive to lease term, often requiring 10-plus year weighted-average length and penalizing shorter tails more aggressively than banks do.
Fixed-rate financing dominates at this loan size and property type; most sponsors and lenders prefer 30-year fixed at a single coupon to eliminate refinance risk and simplify tenant and investor communication. Some banks offer 5/1 or 7/1 ARMs at 15 to 25 basis points below comparable fixed rates, but take-up is low because sponsor credit quality and long lease terms support fixed-rate appetite across the lending market. CMT-based structures are less common at this size unless a sponsor has a specific liability hedge or is a large REIT with multiple concurrent financings.
Most sponsors operate at 25 to 40 percent equity (or 60 to 75 percent LTV), reflecting both lender appetite and sponsor balance sheet strategy. A sponsor buying a portfolio at a 5.25 percent cap rate with 6.28 percent debt will carry negative leverage of roughly 100 basis points; spreading equity across 12 to 15 properties and accepting modest negative leverage is common because dollar store portfolios are purchased for long-term holds and tax-deferred reinvestment (1031) rather than short-term arbitrage. Equity can be sourced from prior gains, retained operating cash flow, or co-investor capital.
Bank lenders typically close in 35 to 50 days; credit unions and regional banks may be faster (25 to 40 days) but often have smaller loan caps. Life insurance companies and CMBS conduit lenders typically require 50 to 75 days due to longer underwriting, committee review, and securitization or policy approval processes. Portfolio deals move slightly faster than single-tenant transactions because lenders view portfolio risk as diversified; seasoned properties with minimal tenant change accelerate underwriting.


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