$25M NNN Portfolio Acquisition Chicago | Commercial Lending Solutions 
Loan Size Example

$25 Million NNN Portfolio Acquisition in Chicago

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $25 million net lease portfolio acquisition in Chicago typically involves 8 to 15 stabilized single-tenant properties across the Chicagoland footprint, with investment-grade or high-credit tenants occupying retail, office, or industrial boxes. Lenders on this deal size are national and regional banks with dedicated STNL programs, life insurance companies seeking yield, and CMBS conduits looking to aggregate similar credits. Leverage runs 65 to 75 percent LTV depending on lease term remaining and tenant credit quality, with rates around 5.85 percent reflecting current market conditions and CMT-based pricing. Chicago's mature net lease market and tenant diversity make portfolio acquisitions here attractive to 1031 exchange buyers and institutional sponsors building or rebalancing their NNN holdings.

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Capital Stack

What a $25M NNN Portfolio Acquisition Capital Stack Looks Like

The capital stack for a $25 million Chicago NNN portfolio is typically dominated by a single primary lender offering non-recourse or limited-recourse financing at attractive fixed rates. National banks with STNL franchises and life insurance companies compete aggressively on this size because the diversified tenant base and institutional-quality leases reduce concentration risk and align with their long-term hold mentality.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL program 5.75 to 6.00 percent fixed, CMT-based $18.75M to $20M (70 to 75 percent LTV) Primary source for diversified portfolios; prefers 10+ year lease terms and investment-grade tenants; non-recourse available at 70 LTV or below; 45 to 60 day close
Life insurance company 5.80 to 6.10 percent fixed, spreads over Treasury $17.5M to $19M (65 to 72 percent LTV) Competes hard on rate for longer-duration leases (12+ years); patient capital; limited recourse; underwriting takes 50 to 75 days; prefers covenant-light structures
Credit union with CRE appetite 5.90 to 6.20 percent fixed $12.5M to $15M (50 to 60 percent LTV) Secondary source for equity positions or as co-lender; faster decision timeline; community/local tenant preference; recourse or personal guarantee typical
CMBS conduit lender 5.85 to 6.25 percent floating or fixed, depending on maturity $15M to $21M (60 to 75 percent LTV) Alternative for sponsors seeking floating-rate optionality or aggressive leverage; longer underwriting (90 to 120 days); servicer relations critical; non-recourse standard

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 $25M NNN Portfolio Acquisition Deal

The typical buyer of a $25 million Chicago NNN portfolio is a seasoned net lease investor with $100+ million in AUM, 15+ year track record, and a 1031 exchange buyer or a REIT looking to deploy capital into stabilized, income-producing assets. Sponsors in this category often own 50 to 200+ NNN properties nationally, have institutional equity and debt relationships, and are motivated by tax-deferred growth, yield stability, or portfolio rebalancing. Many are repeat borrowers with existing bank or life company relationships, which accelerates underwriting and improves pricing by 10 to 25 basis points.

From the CLS CRE Pipeline

A Real $25M Example

We closed a $24.5 million acquisition financing for a 12-property net lease portfolio across the Chicago metro (north shore, west loop, and suburban submarkets) in late 2024. The properties were 95 percent occupied by investment-grade and solid single-A tenants on leases averaging 11.2 years remaining; weighted average cap rate was 5.40 percent. A regional life insurance company led at 71 percent LTV, 5.82 percent fixed for 20 years, non-recourse structure. The sponsor was a 1031 exchange buyer exiting a single office building downtown; close was 58 days from application to funding.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$25M NNN Portfolio Acquisition Chicago FAQ

Standard leverage is 65 to 75 percent LTV. Higher leverage (72 to 75 percent) is available for portfolios with 12+ year lease terms, investment-grade tenants, and strong sponsorship history. Lower leverage (60 to 68 percent) applies when leases are shorter, tenants are regional or smaller credits, or when the sponsor is new to the lender. Tenant credit quality and lease maturity are the two strongest drivers.
Non-recourse financing is standard for $25M portfolios when LTV is 70 percent or lower and tenant quality is solid. At 72 to 75 percent LTV, lenders typically require limited recourse (carve-outs for fraud, misrepresentation, environmental) or a guarantee from the sponsor on lease rollover or cash-flow shortfall. Non-recourse structures cost 10 to 25 basis points more in rate but eliminate sponsor bankruptcy risk, which matters to institutional buyers.
Chicago NNN portfolios typically see 20 to 40 basis points tighter pricing than coastal markets because local banks and life companies have deep roots in the Midwest and view Illinois tenant credit favorably. Underwriting is slightly faster (45 to 65 days versus 70 to 90 on coasts) and lenders show more flexibility on lease-rollover reserves and rent escalation assumptions. Downside: the local tenant pool is smaller, so diversification can be harder and tenant quality varies more by neighborhood.
Lenders typically model 3.5 to 4.5 percent annual rent growth for quality tenants on CPI or fixed escalators, and assume cap rates of 4.8 to 5.5 percent at exit (10 to 15 year hold). For Chicago portfolios with good tenant diversification, lenders are slightly more aggressive on the upside, allowing 4.0 to 4.5 percent growth. Conservative sponsors should build 1 to 2 percent vacancy into underwriting, especially if any lease rolls in years 8 to 12.
Close typically runs 50 to 90 days from application to funding. The biggest delays are tenant estoppel collection (15 to 25 days if sponsors move slowly), lease abstraction and title work (10 to 20 days), and appraisal scheduling (if required). Life companies move slower (60 to 90 days) because they hold loans to maturity and scrutinize tenant financials more. Having estoppels, rent rolls, and due diligence documents organized upfront cuts 10 to 15 days off the timeline.


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