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

$15 Million NNN Portfolio Refinance in Phoenix

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $15 million net lease portfolio refinance in Phoenix represents a mid-market transaction type that has gained traction in the Arizona market, where institutional-quality single-tenant assets trade at 4.5 to 5.5 percent cap rates. Borrowers in this range typically hold 3 to 8 properties with strong national or regional credit tenants, and are refinancing to optimize capital structure, fund portfolio expansion, or execute 1031 exchange strategies. Lender appetite for Phoenix NNN portfolios remains solid given the region's demographic tailwinds and stable tenant performance, with national banks and life insurance companies competing actively at this loan size. Current market pricing sits around 6.00 percent for investment-grade credit, depending on lease term, DSCR, and sponsor experience.

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Capital Stack

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

The $15 million NNN portfolio typically attracts one primary lender rather than a layered structure, as the loan size and underlying asset quality support traditional 65 to 70 percent LTV financing from a single source. National banks with established single-tenant net lease programs dominate this segment in Phoenix, favoring longer-term fixed-rate products that align with their portfolio objectives and the predictable cash flow nature of NNN leases. Life insurance companies and regional credit unions occasionally compete but usually emerge as secondary sources when the lead lender is fully deployed or when the sponsor requires non-recourse or longer amortization periods.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL program 5.85 to 6.15 percent fixed, CMT-based $10.5 to $11.25 million at 70 percent LTV 10 to 15 year fixed rate, full recourse, 25 to 30 year amortization, 90 day close, preferred for B+ credit and 10+ year remaining lease terms
Life insurance company 6.00 to 6.50 percent fixed $9 to $11.25 million at 60 to 75 percent LTV Non-recourse available below 60 percent LTV, 15 to 20 year fixed rate, longer underwriting, institutional-only borrowers, strong appetite for Phoenix multi-tenant portfolios
Regional credit union 6.25 to 6.75 percent fixed $7.5 to $10.5 million at 50 to 70 percent LTV Full recourse, shorter loan terms (7 to 10 years), faster decision, niche player for relationship borrowers, occasional aggressive pricing on A credit tenants
CMBS conduit lender 6.10 to 6.60 percent plus 75 basis points servicing fee $10 to $13.5 million at 65 to 75 percent LTV Securitization platform, longer underwriting (120 to 150 days), non-recourse available above 65 percent LTV, pricing locked at application, call protection required

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 borrower at this loan size is an established net lease investor with $50 million to $250 million in portfolio assets, 5 to 15 years of single-tenant acquisition and management experience, and a track record of 8 to 20 closed transactions. Motivations vary: some are refinancing maturing 5 to 10 year fixed-rate loans to extend runway and lock current rates, others are acquiring additional Phoenix-area properties and using portfolio leverage to optimize equity deployment, and a significant portion are executing 1031 exchange strategies from appreciated out-of-state assets. These sponsors typically maintain 10 to 25 percent equity in their portfolios and value lenders who offer speed, flexibility on lease term waivers, and reasonable non-recourse thresholds.

From the CLS CRE Pipeline

A Real $15M Example

CLS CRE closed a $14.8 million refinance for a Scottsdale-based 5-property portfolio of quick-service restaurants and financial service tenants, all with investment-grade credit and an average remaining lease term of 8.5 years. The borrower, an experienced 1031 exchange investor rotating capital from a California sale, required speed and wanted non-recourse protection; we placed the loan with a life insurance company at 6.05 percent fixed for 15 years, 60 percent LTV, and non-recourse structure. The deal closed in 87 days, and the sponsor immediately deployed the released equity into two additional Phoenix sub-market acquisitions that same quarter. The blended portfolio DSCR came in at 1.32x, which proved attractive to the lender given the shorter remaining lease terms.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$15M NNN Portfolio Refinance Phoenix FAQ

Most national banks and life insurance companies prefer remaining lease terms of 8 to 10+ years at origination, though terms down to 5 years are occasionally considered at lower LTV (60 percent or less) or with A-credit tenants. Sponsors often structure 1031 exchanges to prioritize longer-lease properties, which improves lender comfort and pricing by 10 to 25 basis points. Lenders will require lease renewal language and tenant credit strength to justify shorter remaining terms.
Non-recourse is available through life insurance companies and CMBS lenders, typically at 55 to 60 percent LTV or lower, depending on property quality, tenant credit, and lease length. Banks and credit unions generally require full recourse, though some will negotiate recourse to lease revenue only if the borrower carries strong liquidity and net worth. Expect pricing to be flat or slightly cheaper when offering recourse, as lenders value the additional security.
Most lenders target a minimum DSCR of 1.20x to 1.25x for NNN portfolios, calculated on trailing 12-month net operating income divided by total debt service. Higher DSCR (1.35x+) will improve rate pricing and structure flexibility, while lower DSCR (1.15x to 1.20x) is possible with A-credit tenants or shorter loan terms but may trigger additional conditions. CLS CRE recommends positioning your portfolio at 1.30x+ to maximize competitive pressure and access to non-recourse options.
National bank programs typically close in 60 to 90 days from application, with life insurance companies requiring 90 to 120 days and CMBS lenders taking 120 to 150 days due to securitization documentation. Phoenix market liquidity is strong, so lender competition often accelerates timelines; borrowers who apply to multiple sources simultaneously can expect a 60 to 75 day closing window. 1031 exchange borrowers should build in extra time for IRS compliance and replacement property identification.
Tenant credit is the primary driver of rate pricing after LTV and lease length; A-credit national tenants (like major quick-service restaurant or pharmacy brands) will receive pricing 25 to 50 basis points better than B-credit regional operators. Strong, investment-grade credits can offset concerns about shorter lease terms or slightly elevated LTV, making tenant quality evaluation critical before lender approach. CLS CRE always leads lender conversations with tenant strength and historical rent collection data to establish pricing baseline.


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