$15M NNN Portfolio Refinance Chicago | Commercial Lending Solutions 
Loan Size Example

$15 Million NNN Portfolio Refinance in Chicago

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $15 million NNN portfolio refinance in Chicago typically involves 3 to 8 single-tenant properties leased to investment-grade or credit-rated tenants across the Chicagoland metropolitan area. Borrowers in this size range refinance to lock in longer debt tenors, improve cash flow through rate resets, or redeploy capital into 1031 exchanges and new acquisitions. Chicago's institutional investor base and stable tenant rosters make portfolios attractive to national banks and life insurance companies that specialize in STNL lending. At this loan amount, borrowers can expect CMT-based fixed rates in the 5.90 to 6.10 percent range, with leverage typically ranging from 65 to 72 percent LTV depending on tenant credit quality and remaining lease term.

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Capital Stack

What a $15M NNN Portfolio Refinance Capital Stack Looks Like

Capital for $15 million NNN portfolio refinances in Chicago is dominated by national banks operating formal single-tenant net lease programs and regional life insurance companies seeking seasoned, diversified portfolios with minimal balance-sheet drag. Lender selection hinges on portfolio composition, tenant creditworthiness, weighted average lease expiration, and the borrower's appetite for recourse versus non-recourse structures. Most deals in this size tier close with a single institutional lender rather than syndication, allowing for faster underwriting and closing timelines.

Capital Source Rate / Cost Size / LTV Notes
National bank STNL program CMT + 180 to 220 basis points (5.90 to 6.10 percent all-in) $9M to $15M at 65 to 72 percent LTV Fixed rate, 10 to 15 year term, recourse available, standard commercial underwriting, 60 to 90 day close
Life insurance company 5.85 to 6.25 percent fixed, rate locked at commitment $10M to $15M at 60 to 70 percent LTV Longer hold appetite, non-recourse available at lower LTV, 12 to 20 year amortization, conservative DSCR floor of 1.25x
CMBS conduit lender 6.00 to 6.50 percent, floating or fixed $8M to $15M at 65 to 75 percent LTV Faster underwriting, minimal financial covenants, accepts greater tenant diversification, structured as non-recourse, 10 year term with 20 year amort
Credit union or regional balance-sheet lender 5.95 to 6.20 percent, relationship-based pricing $5M to $12M at 60 to 68 percent LTV Flexible on recourse, faster decision-making for repeat borrowers, strong Chicago market presence, 10 to 15 year fixed rate

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 NNN Portfolio Refinance Deal

Typical borrowers closing $15 million NNN portfolio refinances in Chicago are experienced net lease investors with $50 million to $300 million in total real estate assets, often 1031 exchange entities or REIT-affiliated platforms seeking to recycle capital or improve leverage ratios. These sponsors typically own 4 to 10 net lease properties across the Midwest and beyond, maintain strong tenant relationships, and have closed 2 to 5 previous refinances or acquisitions. Motivations range from capturing lower rates than initial financing, funding additional acquisitions, or transitioning from recourse to non-recourse structures to improve balance-sheet efficiency.

From the CLS CRE Pipeline

A Real $15M Example

CLS CRE closed a $13.8 million NNN portfolio refinance for an experienced Midwest sponsor owning five credit-rated single-tenant office and industrial properties in the Chicago metropolitan area, including assets in the suburbs and near downtown. The borrower refinanced from a previous floating-rate CMBS structure into a fixed 6.05 percent 12-year term at 68 percent LTV with a national bank's STNL program, improving debt service coverage from 1.19x to 1.38x and providing 5-year rate certainty. The transaction closed in 72 days with minimal third-party reports due to strong tenant covenants and consistent rent rolls, and the sponsor immediately deployed $2.1 million in freed-up equity into a 1031 exchange acquisition in the Minneapolis submarket.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$15M NNN Portfolio Refinance Chicago FAQ

National banks and life companies typically require a weighted average tenant credit rating of BBB minus or better for institutional-grade tenants, or minimum investment-grade equivalents for non-rated operators. Portfolios with 60 to 75 percent investment-grade-equivalent tenancy can access the tightest rates and leverage; portfolios weighted toward smaller regional or local operators may face 25 to 50 basis points of rate penalty or 5 to 10 percent LTV reductions. Lenders stress-test lease rollover risk and re-tenanting exposure for properties with less than 5 years of remaining lease term.
Yes, but non-recourse is typically available only through life insurance companies or CMBS conduit lenders, and usually requires LTV below 65 percent or weighted average lease expiration of 8 to 10 years or longer. National banks generally offer recourse or limited recourse tied to cash reserves or guarantor net worth. Non-recourse pricing is usually 15 to 35 basis points higher than full recourse alternatives, reflecting the lender's reduced remedies.
If you're a 1031 exchange borrower, most lenders view the transaction neutrally from an underwriting standpoint, though some require evidence of replacement property identification within strict timelines. Lenders typically care more about the underlying portfolio quality and your net worth than your exchange status. Closing timelines should build in 10 to 15 business days of buffer to coordinate with your exchange facilitator and ensure compliant reinvestment.
At a 6.00 percent rate on a 10 to 12 year amortization, most borrowers see DSCR in the 1.35 to 1.55x range depending on rent growth, expense structure, and property age. Lenders typically offer 65 to 72 percent LTV for BBB minus and better tenants with lease terms of 5 to 10 years remaining; lower credit or shorter leases drop LTV to 60 to 65 percent. Conservative borrowers often target 70 percent LTV to maintain covenant cushion and refinance flexibility.
National bank STNL programs typically close in 70 to 100 days from commitment, while life insurance companies may require 100 to 150 days due to additional underwriting rigor. CMBS lenders can move faster at 60 to 85 days if appraisals and environmental reports are ordered early. Portfolio refinances often close faster than acquisitions because properties and tenants are already stabilized and documented.


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