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

$15 Million NNN Portfolio Refinance in Houston

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $15 million NNN portfolio refinance in Houston typically involves 3 to 8 stabilized single-tenant net lease assets with investment-grade or credit-strong tenants, often spread across retail, office, or industrial corridors in and around the greater Houston area. Lenders competing for this deal size include national banks with dedicated STNL programs, regional credit unions, life insurance companies, and CMBS conduit platforms, each bringing different leverage capacity and term flexibility. At current market conditions, borrowers are seeing rates in the 5.75 to 6.25 percent range depending on tenant credit, lease length remaining, and LTV positioning. This deal size attracts both 1031 exchange buyers looking to consolidate multiple 1031 properties and experienced net lease investors seeking to optimize their capital structure ahead of lease expirations or portfolio repositioning.

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Capital Stack

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

The capital stack for a $15 million NNN portfolio in Houston is typically anchored by a single senior lender, with leverage decisions driven almost entirely by aggregate tenant credit quality and weighted average lease term. National banks dominate this tier due to their appetite for institutional-grade STNL collateral and willingness to offer non-recourse or limited-recourse terms at 65 to 75 percent LTV, while life companies and credit unions compete aggressively on rate and amortization flexibility when tenant profiles are strong.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL program 5.90 to 6.10 percent, CMT-based pricing with 150 to 200 basis point spread $10.5M to $11.25M (70 to 75 percent LTV) Non-recourse or carve-outs for standard reps and warranties; 7 to 10 year amortization; 30 year term available; fast underwriting; requires minimum weighted average lease term of 5 to 7 years
Life insurance company 5.85 to 6.15 percent, fixed or floating with rate cap; portfolio pricing available $10.5M to $12M (70 to 80 percent LTV) Longer hold periods and full amortization attractive to sponsors; recourse varies; 30 to 40 year terms common; strong appetite for sub-investment-grade tenants if lease length and location are solid
Regional credit union with CRE focus 6.00 to 6.20 percent, fixed rate or SOFR-based floating $9M to $12M (60 to 80 percent LTV) Flexible credit box and local market knowledge; sponsor relationship lending common; recourse typically required; 20 to 25 year amortization; faster decision timeline on Houston-based portfolios
CMBS conduit 5.95 to 6.25 percent, rated tranches; swap costs embedded in all-in rate $12M to $15M (80 to 85 percent LTV) Aggressive LTV available but higher cost of funds; pool performance and servicer reputation drive pricing; recourse limited; best fit when portfolio contains trophy assets or strong credit tenants; longer execution timeline (90 to 120 days)

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

The typical sponsor for a $15 million NNN portfolio refinance in Houston is an experienced net lease investor with $50 million to $300 million in AUM, 10 to 20 years of single-tenant net lease experience, and a track record of managing 15 to 50 individual assets across multiple states. Motivations center on rate optimization, extending amortization to improve cash-on-cash returns, consolidating scattered 1031 exchange proceeds into a managed portfolio, or taking advantage of near-term lease expirations to reposition tenants and increase base rent. These sponsors typically have institutional-quality relationships with banks and life companies, maintain strong accounting systems, and are often registered advisors or fund managers themselves.

From the CLS CRE Pipeline

A Real $15M Example

CLS CRE closed a $14.2 million refinance on a six-asset net lease portfolio in the Houston area consisting of a quick-service restaurant chain (4 locations), a fitness facility, and a dental office, all in suburban corridors within 20 miles of downtown. The borrower, an experienced 1031 investor, was consolidating three separate exchanges into one portfolio and needed to lock in a longer amortization to meet equity return hurdles for limited partners. A national bank provided $10.9 million (76.8 percent LTV) at 5.98 percent on a 30 year term with non-recourse (carve-outs for fraud and environmental). The remaining $3.3 million came from the sponsor's carry capital. Weighted average lease term was 6.8 years, and the quick-service restaurant credit was investment-grade, which drove the aggressive LTV and rate. The deal closed in 58 days, and the borrower refinanced two additional portfolios with the same lender within 12 months.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$15M NNN Portfolio Refinance Houston FAQ

Lenders typically want weighted average credit quality in the investment-grade to upper-middle-market range, meaning at least 60 to 70 percent of NOI coming from BB+ or better credits, with no single tenant below B-. On portfolios with strong lease length (8+ years weighted average), regional banks will go higher LTV with one or two solid B or B+ credits filling the rest. Life companies and conduit lenders are more flexible on credit if lease term is long and location is core.
Yes, non-recourse or limited non-recourse is standard at 65 to 75 percent LTV from national banks and life companies. CMBS conduits also offer non-recourse paths but typically at the higher end of LTV (80 to 85 percent), with swap costs baked into pricing. Carve-outs for reps, warranties, and environmental issues are always present, but day-to-day recourse is eliminated if credit and lease term metrics are solid.
Regional banks and credit unions in Houston typically close in 45 to 65 days once documentation is signed, partly because they know the local tenant base and submarket fundamentals already. National bank STNL programs average 60 to 90 days, and CMBS conduits typically run 90 to 120 days due to rating agency review and underwriting depth. Houston's competitive banking market rewards local relationships, so a borrower with an existing regional bank relationship can shorten timelines significantly.
Rates typically rise 25 to 50 basis points, and LTV capacity drops by 5 to 10 percentage points. Lenders see short lease term as refinance risk, so they want higher margin and lower leverage to protect against tenant rollover or downtime at expiration. Borrowers can offset this by locking in renewal options or providing lease extension letters from tenants, which can restore some rate and LTV concessions.
Structurally, no: lenders price based on collateral credit, lease term, and LTV, regardless of how the sponsor funded the down payment or acquisition. However, 1031 sponsors often have higher equity in their existing assets and stronger cash position at refi time, which sometimes leads lenders to offer slightly better terms or willingness to stretch LTV. The main difference is timeline: 1031 buyers often need faster closes to avoid exchange period deadlines, and Houston-based lenders are attuned to this and price in faster execution fees if needed.


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