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

$10 Million NNN Acquisition in Houston

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $10 million NNN acquisition in Houston represents a bread-and-butter deal for most single-tenant net lease lenders operating across Texas. At this size, you're looking at national banks with dedicated STNL programs, regional credit unions, and select life insurance companies competing aggressively for the business. Loan-to-value typically ranges from 65 to 75 percent depending on tenant credit, lease length, and property type, with rates hovering around 6.25 percent for investment-grade credits. Houston's diverse tenant base and competitive lending environment make this the sweet spot for efficient execution and favorable terms.

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Capital Stack

What a $10M NNN Acquisition Capital Stack Looks Like

The $10 million STNL market in Houston is dominated by national banks offering CMT-based fixed rates and flexible terms, though 1031 exchange buyers increasingly turn to life companies for long non-call periods and lower recourse requirements. Lender selection typically hinges on tenant credit rating, remaining lease term, and whether the borrower requires full non-recourse financing or can accept recourse at a lower cost.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL platform 6.25 to 6.50 percent fixed $7M to $10M (70 to 75 percent LTV) CMT-based pricing, 10-year amortization, full recourse to sponsor; preferred for investment-grade single tenants with 8+ year lease term
Regional life insurance company 6.00 to 6.40 percent fixed $6M to $9M (65 to 72 percent LTV) Non-recourse available at lower LTV; long non-call periods (5 to 7 years); ideal for 1031 exchange buyers seeking permanent financing
CMBS conduit lender 6.35 to 6.65 percent plus 0.50 to 0.75 percent servicing $8M to $10M (72 to 75 percent LTV) Full recourse; securitized product; longer funding timeline (45 to 60 days); best for larger pools or sponsors with multiple assets
Credit union with commercial platform 6.15 to 6.45 percent fixed $5M to $9M (65 to 70 percent LTV) Recourse preferred; relationship-based pricing; faster underwriting; competitive on tenant-in-occupancy deals with strong covenant packages

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 buyer in Houston is an experienced investor with $5 million to $15 million in net worth and a track record of 5 to 15 single-tenant deals. Many are 1031 exchange buyers seeking stable income and portfolio diversification, while others are active acquirers rolling up secondary market tenants across multiple Texas markets. Most sponsors prioritize investment-grade credits, extended lease terms, and experienced property management over yield arbitrage.

From the CLS CRE Pipeline

A Real $10M Example

CLS CRE closed a $9.2 million acquisition of a QSR-anchored retail center in a secondary Houston submarket for an experienced operator. The deal priced at 6.28 percent fixed, 70 percent LTV, with a 10-year amortization and full recourse from a national bank's STNL group. The tenant was investment-grade with an 8-year remaining lease, and the sponsor used 1031 exchange proceeds from a prior disposition. The lender funded in 35 days and waived yield maintenance due to the clean credit and seasoned market position.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$10M NNN Acquisition Houston FAQ

Most lenders want BBB- or better from S&P, though investment-grade tenants (A- and above) unlock the best rates and terms. Non-investment-grade tenants are bankable at this size if the lease has 10+ years remaining and the sponsor has strong reserves. Below single-B, you'll see higher rates, lower LTV, and interest from specialty lenders only.
Yes, but expect to give up 25 to 50 basis points in rate and drop LTV to 60 to 68 percent, depending on tenant credit and lease term. Life insurance companies and some debt funds offer full non-recourse at lower leverage; national banks typically require recourse to the sponsor at this loan size. Non-recourse is most common for 1031 exchange deals with investment-grade tenants.
National banks typically close in 30 to 45 days with clean underwriting and full documentation. CMBS conduits run 45 to 60 days due to securitization requirements and third-party reviews. Life companies can be equally fast if they have prior relationship or familiarity with the tenant; rate locks often expire in 30 days so lock early.
Most require 6 to 12 months of debt service in liquid reserves, plus proof of net worth equal to or exceeding the loan amount. For exchange deals, lenders may waive reserves if the borrower is in a like-kind exchange timeline and the property is immediately productive. Demonstrated reserve liquidity significantly improves rate pricing.
Absolutely. Lenders scrutinize the ratio of remaining lease term to amortization; anything below 1.25x to 1.50x introduces extension risk and typically reduces LTV or increases rate. Renewal rate caps, percentage rent resets, and tenant estoppels all factor into lender appetite. Longer, simpler leases with CPI bumps command the most favorable terms.


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