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

$10 Million NNN Acquisition in Nashville

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $10 million single-tenant net lease acquisition in Nashville represents a core-plus play for seasoned CRE investors seeking stable, long-term cash flow in one of the Southeast's strongest metros. Nashville's population growth and diversifying economy have made NNN assets in established submarkets increasingly competitive, with most deals pricing between 5.5 to 6.5 percent depending on tenant credit and lease structure. Lenders underwriting these deals focus heavily on tenant quality, remaining lease term, and property fundamentals, with capital sources ranging from national bank platforms to life company portfolios to debt funds targeting mid-market volume. At this loan size, leverage typically runs 60 to 75 percent LTV for investment-grade tenants with 10 plus years remaining, though rates have stabilized as the market recognizes the quality of Nashville's retail and service-sector operators.

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Capital Stack

What a $10M NNN Acquisition Capital Stack Looks Like

Capital stacks for $10 million NNN acquisitions in Nashville are dominated by national and regional banks with dedicated single-tenant net lease programs, supplemented by life insurance companies and credit unions when deal structure or timeline demands non-traditional execution. Lender selection hinges on tenant credit strength, lease length, property submarket, and the borrower's equity position, with first-position national banks typically offering the most competitive rates and longest terms for A-credit tenants with 15 to 20 year leases.

Capital Source Rate / Cost Size / LTV Notes
National bank (STNL program) 5.75 to 6.25 percent fixed or CMT-based adjustable $7.5M to $8M (75 percent LTV on strong credit) First lien, full recourse, 20 year amortization, standard 1031 and portfolio lending welcome
Regional bank with NNN platform 6.0 to 6.5 percent fixed $6M to $7.5M (60 to 70 percent LTV) Recourse or limited non-recourse available under 65 percent LTV, 25 year amortization, faster underwriting for A-credit tenants
Life insurance company 6.25 to 6.75 percent fixed $5M to $8M (70 percent LTV) Non-recourse available, long-term hold mentality, 30 year terms common, slower close but highest rates attractive for refinance buyers
Credit union or debt fund 6.5 to 7.0 percent $2.5M to $5M (65 percent LTV typical) Non-recourse structure, flexible terms, competitive for secondary tenants or shorter lease periods, niche underwriting

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 sponsor closing a $10 million NNN acquisition in Nashville is an experienced net lease investor with $50 to $150 million in total portfolio value and a track record of 20 to 50 closed NNN transactions. These borrowers are often 1031 exchange buyers or portfolio managers rebalancing exposure toward Nashville submarkets, motivated by cap rate stability, credit quality, and long-term occupancy certainty rather than value-add upside. Debt service coverage ratios on NNN deals run tighter than traditional income properties because net lease structures transfer operating expenses to the tenant, so lenders prioritize tenant strength and lease duration over property-level DSCR.

From the CLS CRE Pipeline

A Real $10M Example

CLS CRE closed a $9.2 million acquisition loan for a Class A drug store on the southeast side of Nashville with a national credit tenant and 18 years remaining on the initial lease term. The borrower, a seasoned 1031 exchange investor, financed at 6.15 percent fixed over 25 years with a national bank's STNL platform at 70 percent LTV with full recourse, generating a 5.8 percent cap rate and strong cash-on-cash returns. The property's location in an established retail corridor with growing household density and the tenant's A-minus credit profile enabled straightforward underwriting and a 45 day close. The borrower later deployed additional proceeds into two similar-sized acquisitions across Tennessee and Georgia within 18 months, creating a repeat referral relationship.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$10M NNN Acquisition Nashville FAQ

Most national and regional banks will offer 70 to 75 percent LTV for investment-grade tenants with lease terms of 12 to 20 years, pricing around 5.75 to 6.25 percent. Life companies will go the same LTV at slightly higher rates and longer terms. If tenant credit is sub-investment-grade or lease term is under 10 years, expect 60 to 65 percent LTV and rate premiums of 50 to 100 basis points.
Non-recourse is available through life insurance companies and select regional banks, typically at 60 to 70 percent LTV and rates 25 to 50 basis points higher than recourse programs. Most national bank platforms require full recourse, though some offer limited non-recourse structures at lower leverage. Borrower experience and tenant credit are key drivers of lender willingness to offer non-recourse terms.
National banks with mature STNL platforms can close in 30 to 45 days with straightforward credit and lease review. Regional banks and life companies typically take 45 to 90 days, depending on their analytical depth and approval structure. 1031 exchange timing pressures can sometimes shorten timelines if borrower and lender are aligned, but rushing quality underwriting is never advisable on net lease deals.
Nashville NNN assets are pricing 4.5 to 5.75 percent cap rate depending on tenant credit, lease term, and property submarket, so structure your acquisition target and financing to achieve 4.8 to 5.5 percent unlevered yield. DSCR on NNN deals is less relevant than on triple-net properties because the tenant pays all operating expenses, but lenders still require enough cash flow to cover debt service with a 1.20 to 1.25 minimum cushion.
1031 buyers are actually preferred by many lenders because they represent repeat, experienced investors and typically close more reliably than first-time net lease buyers. Lenders will accommodate short timelines and sometimes relax documentation requirements if the borrower has a strong portfolio track record. However, lender due diligence on the underlying property and tenant remains just as rigorous, regardless of the buyer's motivation.


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