$3M NNN Pharmacy Acquisition | Commercial Lending Solutions 
Loan Size Example

$3 Million NNN Pharmacy Acquisition Financing

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $3 million NNN pharmacy acquisition nationwide represents a bread-and-butter deal size for national and regional lenders with established single-tenant net lease programs. Most borrowers at this level are repeat 1031 exchange investors or owner-operators seeking to consolidate exposure into a single credit-quality tenant with a long lease term. Rate environment in 2026 sits around 6.25 percent for investment-grade tenants, with loan structures typically ranging from 60 to 70 percent LTV depending on lease length, tenant credit, and remaining term. National banks, life insurance companies, and credit unions all actively compete for this deal size, making execution straightforward for sponsors with clean financials and experienced management.

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Capital Stack

What a $3M NNN Acquisition Capital Stack Looks Like

At $3 million, the capital stack almost always layers a single debt source rather than splitting equity and debt across multiple lenders. National banks with dedicated STNL programs dominate this size because they can underwrite and fund quickly, while life insurance companies and credit unions compete on rate for longer-term fixed assets with AAA or A-credit tenants. Lender selection typically hinges on lease term remaining, tenant credit rating, property location, and the borrower's willingness to accept recourse versus demand for non-recourse leverage.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL program 6.00 to 6.50 percent fixed, CMT-indexed floating options available $2.1 to $2.4 million (70 to 80 percent LTV depending on tenant and lease term) Full recourse to borrower, 10 to 15 year fixed term, non-recourse available at 65 percent LTV or lower, fastest underwriting timeline (30 to 45 days), competitive for A-credit tenants with 10+ years remaining
Life insurance company 6.15 to 6.40 percent fixed for 20 year amortization $1.8 to $2.25 million (60 to 75 percent LTV for A-credit or higher) Non-recourse available at 65 percent LTV, longer hold horizons (15 to 25 year terms), stricter lease length requirements (minimum 8 to 10 years), slower closing (60 to 90 days) but stronger pricing for patient capital
Regional bank credit union 6.35 to 6.75 percent fixed, prime-based or SOFR-indexed floating $900,000 to $1.5 million (30 to 50 percent LTV as secondary or sole source) Full recourse, shorter amortization (10 to 15 years), used as co-lender with national bank or as sole source for smaller acquisitions or refinances, faster decision-making for familiar markets
CMBS conduit (secondary market) 6.50 to 7.00 percent blended, pooled with 50 to 100 other loans $2.0 to $2.7 million (67 to 75 percent LTV minimum pool requirement) Full recourse, 10 year fixed term, longer execution timeline (75 to 120 days), pricing improves with larger pools and stronger collateral, less common at exactly $3M but viable for portfolios of similar assets

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 $3M NNN Acquisition Deal

Typical borrowers at $3 million are experienced investors with $5 to $15 million net worth and a track record of 3 to 10 prior single-tenant acquisitions. Many are 1031 exchange buyers rolling proceeds from a previous disposition, seeking stabilized income and administrative simplicity from a nationally-recognized tenant paying rent, insurance, taxes, and maintenance. Operator experience varies from passive landlords to hands-on owner-occupants; credit profiles typically range from 700 to 800 FICO with established banking relationships.

From the CLS CRE Pipeline

A Real $3M Example

CLS CRE closed a $3.1 million acquisition loan in late 2024 on a major-chain pharmacy in a suburban Denver market for a repeat 1031 investor. The property carried a 12 year remaining lease term with A-credit tenant covenant and 4.8 percent cap rate on NOI of approximately $148,000. A regional bank locked in a 6.25 percent fixed rate at 68 percent LTV with 20 year amortization on a full recourse note; transaction closed in 38 days with no conditions at funding. Borrower used structure to consolidate two smaller retail leases into a single, larger-footprint pharmacy, simplifying management and improving debt service coverage to 1.35x.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$3M NNN Pharmacy Acquisition FAQ

Yes, but typically only at LTV 65 percent or lower, which reduces loan proceeds to approximately $1.95 million. Life insurance companies are the most common non-recourse lender at this size, though some national banks will go non-recourse at 65 percent LTV if the tenant is A-credit or better and the lease has 10+ years remaining. You will pay 10 to 25 basis points more in rate for non-recourse versus full recourse leverage.
Most lenders require a minimum of 8 to 10 years remaining on the lease; life insurance companies often require 10 to 15 years. If your remaining term is only 5 to 7 years, you will face higher rates (50 to 100 basis points above market) or rejection from some lenders. Lease extension options or renewal language can sometimes bridge the gap, but they are not always counted as remaining term.
National banks typically close in 30 to 45 days, while life insurance companies and CMBS conduits take 60 to 120 days. Most closings at this size are non-contingent or contingent only on title and appraisal, so timeline is driven by lender internal process and document preparation rather than diligence complexity.
Lenders do not typically require a minimum DSCR on NNN acquisitions because the tenant pays rent and operating expenses; instead, they focus on lease term, tenant credit, and loan-to-value ratio. NOI is underwritten conservatively (often at 70 to 80 percent of reported rent minus any base year stops or recovery items) for secondary leasing or reserve requirements, but it is not a primary qualifying metric.
Yes, this is one of the most common use cases at this loan size. Lenders understand 1031 exchanges and do not require additional documentation beyond standard underwriting; your timeline must align with 45-day identification and 180-day exchange deadlines. Make sure your lender's closing timeline (usually 30 to 60 days) fits within your exchange window, and discuss timing with your 1031 exchange intermediary early.


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