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

$10 Million NNN Acquisition in Phoenix

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $10M NNN acquisition in Phoenix represents a mid-market entry point for single-tenant net lease investors seeking stabilized, long-term cash flow in one of the Southwest's strongest markets. Phoenix's population growth and economic diversification have made it a preferred market for institutional and 1031 exchange buyers alike, driving consistent demand from regional and national lenders with established STNL platforms. At this size, borrowers typically secure 65 to 75 percent LTV depending on tenant credit quality and remaining lease term, with rates clustering around 6.25 percent tied to current CMT benchmarks. The market favors investment-grade tenants and primary retail corridors, where debt placement is swift and competitive.

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Capital Stack

What a $10M NNN Acquisition Capital Stack Looks Like

Capital stack decisions for $10M NNN deals in Phoenix hinge on tenant profile, lease length, and borrower experience. National banks dominate this size with mature single-tenant net lease programs, but life companies and regional balance sheet lenders compete aggressively for longer-term holds and stronger credits, often pricing tighter and allowing lower LTV structures that appeal to stability-focused sponsors.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL program 6.15 to 6.35 percent fixed, CMT-based $6.5M to $7.5M at 65 to 70 percent LTV Leads market share; non-recourse available below 65 percent LTV; 10-year fixed term standard; strong appetite for investment-grade tenants
Life insurance company balance sheet 6.00 to 6.25 percent fixed $5M to $8M at 60 to 70 percent LTV Longer hold preference; lower LTV sweetens rate; full non-recourse common; 15-year to 20-year term available; slower underwriting but competitive execution
Regional bank portfolio lender 6.30 to 6.50 percent fixed or floating $3M to $5M at 65 to 75 percent LTV Quick decision timelines; local market knowledge; recourse typical; 7-year to 10-year terms; good fit for relationship-based borrowers
Credit union STNL platform 6.40 to 6.65 percent fixed $2M to $4M at 65 to 72 percent LTV Membership eligibility required; niche player but competitive on smaller tranches; full recourse; faster approvals than insurance companies

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

Typical borrowers at the $10M level combine institutional net worth of $25M to $75M+ with 8 to 15 years of single-tenant or broader CRE experience and a track record of 3 to 8 completed acquisitions. Many are 1031 exchange buyers transitioning from apartment or office portfolios, seeking the defensive, long-term lease income that NNN structures provide. These sponsors value pricing predictability, non-recourse optionality, and flexible prepayment terms, and often work with experienced CRE advisors to evaluate tenant credit quality and lease mechanics before debt placement.

From the CLS CRE Pipeline

A Real $10M Example

CLS CRE closed a $9.8M acquisition loan for an investment-grade tenant in Scottsdale on a 15-year NNN lease with 12 years remaining. The borrower, an experienced 1031 investor relocating portfolio capital from California, secured a fixed-rate loan at 6.18 percent at 68 percent LTV through a life company balance sheet program. The structure included full non-recourse and 10-year fixed terms with extension options, allowing the sponsor to model long-term hold economics with certainty. Underwriting and closing closed in 45 days, and the property has performed on budget since funding.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$10M NNN Acquisition Phoenix FAQ

Lenders strongly favor investment-grade tenants (A- or higher) or franchisees of national brands with long operating histories and stable financials. Regional and local operators are viable if tenant net worth and personal guarantee are robust, but they typically carry 25 to 50 basis points of rate premium and tighter LTV ceilings. A lease remaining term of 10+ years is standard for top-tier pricing.
Yes, but non-recourse is typically available only below 65 percent LTV with strong tenant credits and longer lease terms remaining. At 65 to 70 percent LTV, most lenders require limited or full recourse, though life companies and conduit CMBS programs more commonly offer non-recourse across wider LTV bands. Expect 10 to 25 basis points of rate premium for non-recourse product.
National banks and regional balance sheet lenders typically close in 35 to 50 days with clean applications and strong credit profiles. Life insurance companies move slower, often 50 to 75 days, due to thorough underwriting and portfolio committee reviews, but rarely request rework. CMBS conduits fall in the 60 to 90 day range and have higher documentation standards.
Remaining lease term is heavily weighted in pricing: leases with 15+ years remaining typically lock the best rates and highest LTV, while leases below 8 years remaining face 25 to 50 basis points of rate premium and LTV haircuts of 3 to 5 percent. Lenders view short-tail leases as refinance risk and price accordingly. Cap rate and local market conditions also affect pricing, but lease quality dominates.
Most 10-year fixed programs include yield maintenance or a step-down prepayment penalty structure, with yield maintenance typically running 50 to 75 basis points in a flat or rising rate environment. Some lenders offer 5 to 7 year fixed terms with minimal or no prepayment penalties if you are willing to accept 15 to 25 basis points of rate premium. CMBS and conduit products tend to have stricter call protection.


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