$15M Casual Dining NNN Portfolio | Commercial Lending Solutions 
Loan Size Example

$15 Million Casual Dining NNN Portfolio Financing

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $15 million casual dining NNN portfolio nationwide typically consists of 8 to 15 single-tenant properties leased to established regional or national casual dining operators with investment-grade or near-investment-grade credit ratings. These portfolios attract national banks with dedicated STNL programs, life insurance companies seeking stable long-term yields, and CMBS conduit lenders competing for diversified lease pools. Leverage ranges from 60 to 75 percent LTV depending on tenant credit strength and remaining lease term, with 6.00 percent representing mid-market pricing for strong tenant profiles with 10-plus year remaining lease terms.

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Capital Stack

What a $15M Casual Dining NNN Portfolio Capital Stack Looks Like

National banks dominate the $15 million casual dining NNN space, offering CMT-based floating or fixed-rate programs with non-recourse options at LTV 70 percent and below. Life insurance companies and CMBS conduits compete on longer amortizations and fixed rates, making them attractive for sponsors seeking payment certainty and portfolio hold strategies. Lender selection typically hinges on tenant credit profile, lease length, geographic concentration, and whether the sponsor seeks floating or fixed pricing.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL program 5.85 to 6.15 percent fixed, or CMT plus 200 to 250 basis points floating $10.5M to $12M at 70 to 75 percent LTV Leads the market for casual dining portfolios; offers non-recourse at 70 percent LTV or below; 20 to 25 year amortization; prefers investment-grade or A-minus tenant credit; CMT-indexed programs popular for floating-rate buyers
Life insurance company 5.95 to 6.25 percent fixed $8M to $11M at 60 to 70 percent LTV Preferred for long hold investors and 1031 exchange buyers; fixed rates lock in for entire term; 25 to 30 year amortization; strong underwriting of tenant financials and lease escalations; typically full recourse but negotiable for strong sponsors
CMBS conduit lender 6.10 to 6.40 percent fixed $12M to $15M at 65 to 75 percent LTV Aggressive on larger portfolio sizes; fixed-rate securitization programs; 10 year lockout period standard; appraisal-dependent and detailed underwriting of rent rolls; appeal to sponsors executing acquisition or refinance strategies
Regional credit union or community bank 6.15 to 6.50 percent fixed or floating $5M to $8M at 65 to 70 percent LTV Secondary source for relationship-based deals or smaller portfolio slices; shorter terms and relationship pricing; often quicker approval for sponsors with local market presence or prior loan history

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 $15M Casual Dining NNN Portfolio Deal

Typical sponsors for $15 million casual dining NNN portfolios are seasoned net lease investors or family offices with $50 million-plus net worth and a track record of 3 to 5 prior single-tenant or portfolio acquisitions. Many are 1031 exchange buyers exiting office or retail, attracted to casual dining's stable rent and investment-grade tenant credit. Motivations center on yield-chasing, portfolio consolidation, or long-term hold strategies targeting 5 to 7 percent cap rates with modest annual rent growth.

From the CLS CRE Pipeline

A Real $15M Example

CLS CRE closed a $14.2 million portfolio financing for a 12-property casual dining lease portfolio across the Southeast, Midwest, and Southwest, anchored by two investment-grade operators. The loan structured at 72 percent LTV with a national bank at 5.95 percent fixed, 25 year amortization, and full non-recourse at maturity. Weighted average lease term was 11.2 years with 2 percent annual escalations, generating strong DSCR above 1.35x. The sponsor, a 1031 exchange buyer from a retail disposition, closed within 35 days and deployed the capital into a long-term hold strategy.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$15M Casual Dining NNN Portfolio FAQ

A $15 million casual dining NNN loan typically finances 8 to 15 properties spread across 4 to 8 states, with each property ranging from $800,000 to $2.5 million in value depending on market and brand. Portfolio diversification across regions and multiple casual dining operators is a key underwriting metric; lenders expect no single tenant or market to exceed 30 to 40 percent of the portfolio NOI. Geographic concentration risk is heavily penalized in loan pricing, so coast-to-coast or multi-region spreads command tighter rates.
Lenders typically require weighted-average tenant credit at BBB-minus or better, or investment-grade equivalent ratings from a national bank or credit agency database. A-minus or A-rated tenants receive best pricing; each below-investment-grade or unrated tenant reduces pricing by 25 to 50 basis points and may trigger lower LTV ceilings. For a $15 million portfolio, having at least 60 to 70 percent of NOI from investment-grade or investment-grade-equivalent operators is standard market practice.
Yes, non-recourse financing is widely available from national banks and some life insurance companies at 70 percent LTV or below for strong investment-grade tenant profiles with 10-plus year lease terms. Non-recourse pricing typically sits 25 to 50 basis points higher than full-recourse alternatives to compensate lenders for loss of borrower guarantees. Sponsors seeking full non-recourse at higher LTVs (72 to 75 percent) should expect full recourse or a partial guarantee on a sleeve of the portfolio.
Casual dining portfolios with strong rent growth, long lease terms, and investment-grade tenants are pricing at 5.85 to 6.25 percent, down from 6.50 to 7.00 percent in 2024, as capital supply from life insurance companies and CMBS conduits has increased. Rate sensitivity hinges on CMT spreads for floating-rate programs; fixed-rate offerings compete directly with Treasury yields and bank deposit costs. Geographic and tenant diversification, along with documented rent escalation history, remain the strongest pricing tailwinds for this asset class.
Lenders typically require minimum weighted-average lease term of 7 to 10 years remaining, with individual properties no shorter than 5 years to qualify for best pricing. Annual rent escalations must average at least 1.5 to 2.0 percent across the portfolio; properties with flat rent receive haircuts to NOI or may be excluded entirely. Life insurance companies and CMBS lenders underwrite escalation clauses deeply, including CPI indices, fixed-step increases, and resets, and will reduce LTV if escalations are weak or absent.


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