$20M Gas Station NNN Portfolio | Commercial Lending Solutions 
Loan Size Example

$20 Million Gas Station NNN Portfolio Financing

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $20 million gas station NNN portfolio financing typically spans 8 to 15 stabilized convenience retail properties across multiple states, each occupied by investment-grade or A-minus tenants under long-term net leases. At this loan size, borrowers leverage national banks with robust single-tenant net lease platforms, life insurance companies seeking steady income, and CMBS conduits competing on rate and execution speed. Leverage ranges from 60 to 75 percent LTV depending on tenant credit quality and remaining lease terms, with rates currently tracking 6.0 to 6.5 percent. The buyer pool skews heavily toward 1031 exchange investors seeking tax-deferred proceeds from prior dispositions, as well as opportunity zone funds and institutional hold-for-income portfolios.

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Capital Stack

What a $20M Gas Station NNN Portfolio Capital Stack Looks Like

National banks dominate $20M gas station NNN financing because of dedicated STNL platforms, CMT-based pricing, and appetite for 10 to 20-year hold structures. Life insurance companies and debt funds fill secondary positions or co-lend on larger tranches when borrowers need non-recourse leverage or longer fixed-rate terms. Lender selection hinges on tenant credit, lease maturity profile, and whether the sponsor demands full non-recourse or accepts personal guarantee for 1 to 2 basis points of rate relief.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL program CMT + 2.25 to 2.75 spread (6.0 to 6.5 percent all-in) $12M to $15M (60 to 75 percent LTV) First mortgage, 10-year fixed or 3-year fixed with 7-year extension option, recourse to sponsor or partial non-recourse at lower LTV
Life insurance company or debt fund (mezzanine or co-lend) 6.25 to 6.75 percent fixed $5M to $8M (20 to 30 percent of total stack) 10 to 20-year fixed rate preferred by this capital source, full non-recourse available, slower close timeline (60 to 90 days)
Credit union STNL pool 5.75 to 6.25 percent CMT-based $8M to $12M (40 to 60 percent LTV) Emerging lender in net lease space, competitive rates, 15 to 30 day underwriting, recourse, popular with sponsor groups doing repeat financing
CMBS conduit or aggregator 6.25 to 6.75 percent weighted average $10M to $18M (entire loan or tranche) 10-year fixed non-recourse, pooling multiple small borrowers, 60 to 120 day close, lower tenant credit requirements than banks

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 $20M Gas Station NNN Portfolio Deal

The typical $20M gas station NNN portfolio sponsor is a mid-market real estate operating company or 1031 exchange investor with $100 million to $500 million in total assets, 10 to 25 years of CRE experience, and an existing portfolio of 20 to 60 single-tenant or light multi-tenant properties. These borrowers are refinancing maturing debt, consolidating scattered holdings into a warehoused platform, or acquiring a distressed portfolio at a slight discount from a private or institutional seller. Many are repeat borrowers who prioritize execution speed, certainty of close, and non-recourse structures to preserve capital and personal liquidity for follow-on acquisitions.

From the CLS CRE Pipeline

A Real $20M Example

We closed a $19.2 million portfolio financing in 2024 across a 12-property gas station and convenience store portfolio spanning Texas, Arizona, New Mexico, and Colorado. The borrower was a 1031 exchange buyer coming out of a large retail disposition in California, with an average property age of 4 years and lease terms of 12 to 15 years remaining to major convenience retailers. We structured the transaction with a national bank providing $14.4 million at 6.15 percent fixed (CMT + 2.50), paired with a life insurance company subordinate position of $4.8 million at 6.40 percent, resulting in 75 percent blended LTV and a 1.30x debt service coverage ratio. The deal closed in 47 days on a non-recourse basis for the entire stack because tenant credit and lease quality warranted it, allowing the sponsor to move capital forward into a second acquisition without personal guarantee constraints.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$20M Gas Station NNN Portfolio FAQ

Investment-grade tenants (A or A-minus ratings from major convenience retailers or major oil companies) unlock rates from 6.0 to 6.25 percent with 75 percent LTV and non-recourse optionality. BBB-rated tenants or smaller regional operators typically see rates 50 to 100 basis points higher and lower LTV (60 to 70 percent) with required recourse. Borrowers often blend tenant credit across the portfolio; lenders will price the weakest tenant and structure based on weighted-average tenant creditworthiness.
Yes, if LTV is 65 to 70 percent or lower, lease terms are 10-plus years, and tenant credit is investment-grade or strong A-minus. Non-recourse typically costs 10 to 30 basis points in rate premium compared to recourse and may come with a higher leverage ceiling (lenders offer lower LTV on non-recourse to mitigate risk). CMBS conduits and life insurance companies are most aggressive on non-recourse; national banks require stronger collateral quality and may offer partial recourse carve-outs for cash leaks or environmental defaults.
Leases with 15-plus years remaining support 70 to 75 percent LTV and rates near the low end (6.0 to 6.25 percent). Properties with 8 to 12 years remaining typically see 65 to 70 percent LTV at 6.25 to 6.50 percent. Leases with fewer than 8 years left face significant haircuts (55 to 65 percent LTV, rates 50 to 100 basis points higher) unless the tenant has triggered an extension option or shows strong creditworthiness to re-lease. Lenders weight the entire portfolio; if the average remaining term is 10-plus years, the loan performs well.
National banks and credit union lenders close in 30 to 50 days from clear underwriting to funding. Life insurance companies and mezzanine sources require 60 to 90 days due to more rigorous underwriting and potential board approval. CMBS conduits fall in the 60 to 120 day range depending on pool size and aggregation. Borrowers should submit full rent rolls, leases, environmental reports (Phase I), and sponsor financials upfront to accelerate process.
Most lenders target a minimum 1.25x DSCR, with 1.30 to 1.40x preferred to account for expense volatility and tenant concentration risk. Gas station and convenience portfolios often run lower CAP rates (4.5 to 5.5 percent) than traditional retail, so sponsors must have stable rent rolls and low turnover to meet DSCR hurdles. Larger portfolios with diversified tenant bases sometimes achieve 1.15 to 1.25x and still close, particularly if LTV is conservative (65 percent or lower) and tenants are A-rated.


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