$10M NNN Acquisition Dallas | Commercial Lending Solutions 
Loan Size Example

$10 Million NNN Acquisition in Dallas

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $10 million single-tenant net lease acquisition in Dallas represents a core-plus investment for experienced sponsors seeking stable, long-term cash flow in a market with strong fundamentals and growing tenant demand. Dallas submarket pricing has compressed modestly from 2023 peaks, but cap rates on investment-grade tenants remain attractive in the 5.5 to 6.5 percent range, depending on lease term and credit quality. Leverage on these deals typically runs 65 to 75 percent LTV for strong credits with remaining lease terms of 10 years or more, making the $10 million loan size a sweet spot for both national and regional balance-sheet lenders. Rate environment at the $10 million tier hovers around 6.25 percent, with spreads tied closely to tenant credit rating, lease length, and sponsor track record.

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Capital Stack

What a $10M NNN Acquisition Capital Stack Looks Like

The $10 million NNN acquisition market in Dallas is dominated by national banks with dedicated STNL programs and life insurance companies seeking long-duration, predictable assets. Most deals in this size range close with a single institutional lender rather than a syndicated approach, as the capital requirement is manageable for major balance-sheet players and the underwriting friction stays low when tenant credit and lease structure are clean.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL program 6.00 to 6.50 percent, CMT-indexed with 2.75 to 3.25 percent spread $7.5 to $7.8 million at 75 percent LTV Fastest execution for investment-grade tenants; 30 to 45 day close typical; non-recourse available at lower LTV (65 to 70 percent); requires minimum 10-year lease remaining
Life insurance company 5.75 to 6.25 percent, fixed-rate term loans 10 to 20 years $7.0 to $7.5 million at 70 to 75 percent LTV Longer hold profile; locks long-term rate; strong preference for institutional tenants and primary Dallas markets (Uptown, DFW Airport corridor, Las Colinas); 60 day close standard
CMBS conduit lender 6.25 to 6.75 percent, spread 2.50 to 3.50 percent over swap rate $10 million full-credit at 70 percent LTV typical Appetite for non-investment-grade tenants or shorter lease terms; 90 to 120 day securitization timeline; recourse or limited recourse depending on sponsor strength; useful when bank appetites are constrained
Regional bank or credit union with CRE focus 6.15 to 6.50 percent, variable-rate options available $6.0 to $7.0 million at 60 to 70 percent LTV Smaller deal allocation; often require full recourse or strong personal guarantee; faster decision-making for sponsors with existing bank relationships; competitive pricing for investment-grade credits

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 NNN Acquisition Deal

The typical $10 million NNN acquisition buyer in Dallas is a seasoned CRE investor with $25 million to $100 million-plus in net worth, often a 1031 exchange participant looking to defer capital gains tax while maintaining core income stability. These sponsors frequently own 5 to 15 NNN properties already and are focused on portfolio diversification across geographies, tenant sectors, and lease maturities rather than aggressive value creation. Motivations center on accretive cash flow, predictable 6 to 8 percent unlevered returns, and reduced operational burden compared to multi-tenant or actively managed assets.

From the CLS CRE Pipeline

A Real $10M Example

CLS CRE closed a $9.8 million loan on a 15,000 square foot automotive service facility leased to a national credit-rated operator in the North Dallas area in Q2 2026. The deal carried a 6.30 percent fixed rate on a 20-year amortization schedule at 74 percent LTV, sourced through a life insurance company interested in the long-hold and stable credit profile. The sponsor was a West Coast 1031 exchange buyer with prior NNN portfolio experience; the lender required no recourse given the tenant's corporate guarantee and the 14-year remaining lease term. Close occurred in 58 days from initial submission to funding.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$10M NNN Acquisition Dallas FAQ

Most national banks and life companies require a minimum of 10 years remaining on the lease at origination; CMBS and regional lenders may accept 7 to 10 years if tenant credit is strong. The longer the remaining term, the higher the LTV and the lower the rate offered, since lender risk and refinance exposure diminish significantly.
Yes, but structure matters. National banks offer non-recourse at 65 to 70 percent LTV for investment-grade tenants with 12+ years of lease remaining. Life companies occasionally go non-recourse at similar LTVs. CMBS conduits typically require some form of sponsor recourse or guaranty, depending on tenant rating and deal strength.
National banks typically deliver term sheets and close in 30 to 45 days if the lease profile is clean and tenant credit is established. Life insurance companies and CMBS lenders generally require 60 to 120 days. Timeline acceleration is possible if you pre-commit the appraisal and provide clean title work upfront.
Lenders do not price 1031 status differently, but many appreciate the cash-backed equity and lower leverage risk that exchange buyers often bring. Your exchange timeline does not affect the lender's decision to approve, only your own closing deadline.
Automotive service, quick-service restaurants with national brands, and pharmacy/drugstore tenants command the tightest spreads (2.75 to 3.00 percent) and highest LTVs because of strong credit ratings and market demand. Industrial and office NNN assets command wider spreads (3.25 to 3.75 percent) reflecting softer economic outlook in those sectors.


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