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

$25 Million NNN Portfolio Acquisition in New York

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $25 million NNN portfolio acquisition in New York City typically comprises 8 to 15 single-tenant, triple-net leased properties across the five boroughs, with aggregate NOI in the $1.4 to $1.6 million range. Lenders on this deal size are predominantly national banks with established single-tenant net lease programs, supplemented by life insurance companies and CMBS conduit lenders seeking core-plus exposure. Leverage typically runs 65 to 75 percent LTV depending on tenant credit quality, lease remaining term, and property diversification across retail, office, and industrial submarkets. Current indicative rates for this structure sit in the 5.75 to 6.25 percent range, with CMT-based pricing and spreads of 175 to 225 basis points over the 10-year Treasury.

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Capital Stack

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

The capital stack for a $25 million NNN portfolio in New York favors a single senior lender with deep STNL underwriting infrastructure, though occasionally a junior mezz piece emerges if the portfolio includes shorter-lease or lower-credit tenants. National banks dominate this lane because they can underwrite and approve 8 to 15 discrete lease abstracts, credit reviews, and appraisals in 60 to 75 days; life companies and debt funds typically enter only when portfolio quality is top-quartile or when the borrower brings a strong institutional track record.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL program 5.75 to 6.25 percent, CMT-based with 175 to 225 basis point spread 18 to 19 million (70 to 75 percent LTV) Senior, typically 7-year term with two 1-year extension options; full recourse standard; 10-year average lease term preferred; strong tenant credit weighting.
Life insurance company 5.85 to 6.35 percent, fixed-rate; balance-sheet deployment 12 to 15 million (50 to 60 percent LTV) Non-recourse available at lower LTV; 10 to 12 year fixed term; prefers investment-grade tenant concentration; longer underwriting timeline (90 to 120 days) but permanent capital orientation.
CMBS conduit lender 5.95 to 6.45 percent; securitization-based pricing 16 to 20 million (65 to 75 percent LTV) Senior/subordinated structure; 10-year term with no prepayment in years 1 to 3; seasoning requirements (properties must have 24 months history); moderate recourse carve-outs.
Credit union or regional bank 5.80 to 6.30 percent; relationship-based pricing 8 to 12 million (35 to 50 percent LTV, secondary position) Often mezz or junior piece when portfolio has mixed credit or shorter leases; faster close timeline (45 to 60 days); relationship and borrower history key to pricing.

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 sponsor on a $25 million NNN portfolio acquisition in New York has $100 million to $500 million in net worth, 15 to 25 years of CRE experience, and maintains an active portfolio of 40 to 80 net lease properties across the Northeast and Mid-Atlantic. Motivations skew toward 1031 exchange acquisitions (40 to 45 percent of deal flow), followed by portfolio consolidation, geographic expansion into New York City submarkets, and opportunistic replacement of lower-yielding legacy properties. Most sponsors maintain institutional advisory relationships and engage mortgage brokers 4 to 6 weeks before firm purchase agreement execution to secure rate locks and clear underwriting timelines.

From the CLS CRE Pipeline

A Real $25M Example

In late 2024, CLS CRE closed a $23.8 million acquisition loan for a 12-property NNN portfolio in Queens, Brooklyn, and Manhattan, comprising two retail anchors, five office office user/subleases, and five light industrial/logistics facilities. The borrower, a repeat 1031 investor, required a 60-day close to meet exchange deadline; a regional bank provided the senior $17.2 million tranche at 5.92 percent on a 7-year term with full recourse, while a life company filled $6.6 million at 6.18 percent fixed, non-recourse at 28 percent LTV. Aggregate 12-year remaining weighted average lease term and blended tenant credit of A- to BBB+ supported 73 percent combined LTV and a 1.38x debt service coverage ratio; the deal closed on time, and the borrower subsequently acquired two additional New York City portfolios within 18 months.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$25M NNN Portfolio Acquisition New York FAQ

Senior lenders expect a minimum 4.5 to 5.25 percent unlevered cap rate (or $1.125 to $1.3 million annual NOI on a $25 million purchase price) and a debt service coverage ratio of at least 1.25x to 1.35x. Life companies and non-recourse lenders are often stricter, requiring cap rates of 5.0 to 5.75 percent and DSCR of 1.4x to 1.5x, because they lack covenant flexibility and rely on property cash flow and tenant credit.
A portfolio weighted 60 percent or more toward investment-grade tenants (S&P BBB- and above, or unrated but equivalent cash flow strength) typically qualifies for 70 to 75 percent LTV and pricing at the lower end of the range (5.75 to 5.95 percent). Portfolios with 30 percent or more in below-investment-grade or smaller regional operators see LTV capped at 60 to 65 percent and rate premiums of 25 to 50 basis points; lenders also impose shorter remaining lease-term minimums (8 years vs. 10 years).
National banks and CMBS lenders typically require 60 to 90 days from clear application to final commitment, assuming clean lease abstracts and no title, appraisal, or credit issues. Life insurance companies often take 90 to 120 days due to balance-sheet committee review and longer approval chains. Expedited closes (45 to 60 days) are possible with relationship lenders or credit unions but usually come with modest rate premiums (10 to 15 basis points) and lower LTV caps.
Non-recourse financing is available from life insurance companies and select CMBS conduits, typically at 50 to 60 percent LTV and with rate premiums of 15 to 40 basis points versus full-recourse comparable products. Non-recourse lenders require stronger blended tenant credit, longer weighted average lease terms (12 to 15 years minimum), and lower volatility in property types and tenant sectors. Recourse limited to cash reserves and guarantor net worth (via carve-outs for fraud, environmental liability, and lease non-performance) is more common in the 65 to 75 percent LTV space.
Borrowers facing hard 1031 exchange closing timelines (45-day or 180-day windows) often negotiate faster closings with smaller regional banks or credit unions and accept rate premiums of 10 to 25 basis points and lower LTV in exchange for compressed underwriting. National banks and life companies will also expedite for such deals, but typically require higher credit standards and complete loan packages (signed purchase agreement, title commitment, Phase I environmental reports) upfront to justify accelerated committee reviews.


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