$4M Medical/Dental NNN Acquisition | Commercial Lending Solutions 
Loan Size Example

$4 Million Medical and Dental NNN Acquisition

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $4 million medical and dental net lease acquisition nationwide represents a core institutional play for experienced 1031 exchangers and portfolio builders seeking stable, triple-net cash flow. At this loan size, borrowers can typically access leverage of 65 to 75 percent LTV depending on tenant credit quality, lease length, and geographic market conditions. Lenders active in this segment span national banks with dedicated STNL programs, regional debt funds, life insurance companies, and credit unions, all competing aggressively for investment-grade operator tenants. Rates in the current environment are anchored to CMT indices, ranging from 6.75 to 7.25 percent for well-structured medical and dental NNN deals with investment-grade or near-investment-grade credit.

Get a Quote on Your $4M Deal →
Capital Stack

What a $4M Medical NNN Acquisition Capital Stack Looks Like

Capital stack decisions at the $4M level are driven primarily by tenant credit quality and lease remaining term. National banks with established single-tenant net lease programs dominate this segment because they offer competitive CMT-based pricing, faster underwriting, and non-recourse options at 60 to 70 percent LTV. Life insurance companies and regional debt funds compete for longer-dated leases with strong tenant balance sheets, while credit unions often focus on borrowers with existing relationships and a local market presence.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL program CMT plus 225 to 275 basis points; currently 6.75 to 7.25 percent $2.4M to $3M (60 to 75 percent LTV) Non-recourse available at 60 to 65 percent LTV; 7 to 10 year amortization; CMT-indexed; 45 to 60 day close
Life insurance company 7.00 to 7.50 percent fixed $2.4M to $3M (60 to 75 percent LTV) Prefers 8 plus year lease term and investment-grade tenants; recourse or limited recourse; 60 to 90 day underwriting; 15 to 20 year amortization available
Regional debt fund 7.25 to 7.75 percent $1.6M to $2.8M (40 to 70 percent LTV) Higher LTV available for strong credit; full recourse expected; flexible on tenant type; 30 to 60 day close
Credit union (niche market) 6.50 to 7.25 percent $1.6M to $2.4M (40 to 60 percent LTV) Member-only or relationship-driven; lower leverage; strong local market focus; 45 to 75 day timeline

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 $4M Medical NNN Acquisition Deal

Typical borrowers at the $4M NNN tier are experienced net lease operators with $10M to $50M in portfolio assets, typically holding 5 to 15 single-tenant properties. These sponsors often execute 1031 exchanges from older holdings, seeking to redeploy capital into newer medical and dental boxes with long-term credit and predictable net-lease cash flow. They maintain net worth of $2M to $10M, have strong banking relationships, and prioritize stable 5 to 7 percent cash-on-cash returns with minimal capital intensity.

From the CLS CRE Pipeline

A Real $4M Example

CLS CRE closed a $3.8M loan on a newly built medical office and dental practice NNN property in a secondary market suburban submarket in the South. The borrower was a 1031 exchanger with an existing portfolio of three NNN properties; the property featured a 10-year lease with an A-minus-rated regional dental operator and a 3.5 percent annual escalator. We structured the deal at 70 percent LTV with a national bank lender at 7.10 percent fixed, 10-year amortization, with non-recourse available at 65 percent LTV. The borrower elected full recourse to secure a 40 basis point pricing improvement, closing in 52 days with strong underwriting flow.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$4M Medical/Dental NNN Acquisition FAQ

National banks and life companies at this loan size typically require investment-grade credit (BBB- or higher) or strong near-investment-grade operators with 5+ years of operating history and EBITDA verification. Regional debt funds and credit unions may accept tenant credit in the BB to BBB range if the lease term is 8+ years and the operator has local market presence. Tenant balance sheet strength, management depth, and local market reputation all factor into credit analysis and pricing.
Yes, but with conditions. National banks typically offer non-recourse at 60 to 65 percent LTV on investment-grade credit and 8+ year leases. Life insurance companies may push non-recourse slightly lower due to longer hold periods. Most borrowers at this size accept full or limited recourse in exchange for 25 to 50 basis points of rate savings and faster underwriting.
Lease length is critical. Deals with 10+ year remaining term and 3 to 5 percent annual escalators attract the most aggressive pricing from life companies and CMBS conduits, often 25 to 50 basis points better than shorter-dated leases. Leases with 6 to 8 years remaining shift pricing higher and may tighten LTV. Leases with less than 6 years remaining become difficult to finance at traditional LTV and typically require cash equity or subordinate financing.
Well-structured deals with strong tenant credit and 8+ year leases typically close in 45 to 75 days from submission. National banks close fastest at 45 to 60 days; life insurance companies take 60 to 90 days; debt funds often close in 30 to 60 days if deal quality is high. Portfolio acquisitions or marginal tenant credit can extend timelines to 90 to 120 days due to deeper due diligence.
1031 exchangers are preferred borrowers in the net lease market because they are buying for long-term hold and income stability, not speculative exit. Lenders view them as lower-risk, more disciplined operators. However, lenders still require the same level of financial documentation, tenant credit review, and lease analysis. Exchange timelines can compress closing schedules, so early communication with your lender is critical to ensure all conditions are satisfied within the 45-day identification window.


Get a Quote on Your $4M Deal

Tell us about your transaction. We will run it past lenders that actively fund this size and product type and send back terms within 48 hours.

Apply for Financing →
Or call us: 310.708.0690

Weekly Market Intelligence

Rate updates, deal insights, and capital markets analysis. One email per week. Unsubscribe anytime.

No spam. No selling your data. Just market intelligence from a working broker.

Need financing? Apply in 2 minutes. Response within 24 hours.
Apply Now →
📈

Before You Go…

Get matched with the right lender from our network of 1,000+ capital sources.

Or call us: 310.708.0690

No spam. Unsubscribe anytime.