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

$4 Million Medical NNN Acquisition in Charlotte

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $4 million medical or dental net lease acquisition in Charlotte represents a core-plus play for experienced net lease investors seeking recurring, inflation-adjusted cash flow in one of the Southeast's strongest healthcare markets. Charlotte's population growth and strong tenant credit profile make single-tenant medical facilities attractive to national banks and life insurance lenders, who typically offer leverage of 60 to 75 percent depending on lease term and tenant strength. At current market conditions, borrowers are pricing in 7.00 percent fixed rates with terms of 10 to 20 years, reflecting a stable but competitive lending environment. This deal size fits comfortably within regional and national lender appetites and attracts both stabilized accumulators and 1031 exchange buyers looking for predictable yield.

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Capital Stack

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

National banks with single-tenant net lease programs dominate the $4 million medical NNN space in Charlotte, followed closely by life insurance company balance sheets and CMBS conduit lenders. Lender selection typically hinges on lease length, tenant credit tier, and the borrower's preference for fixed rate certainty versus floating-rate savings. Equity sponsors commonly stack debt and retain 25 to 40 percent equity, with 1031 exchange buyers making up a significant portion of Charlotte deal flow.

Capital Source Rate / Cost Size / LTV Notes
National bank, single-tenant net lease program 7.00 to 7.50 percent fixed, CMT-based pricing $2.4M to $3.0M (60 to 75 percent LTV) Recourse or limited recourse available. 10 to 20 year terms. Preferred lender for A-credit tenants and longer leases. 30 to 45 day funding timeline.
Life insurance company balance sheet 6.85 to 7.35 percent fixed, institutional spreads $2.0M to $3.0M (65 to 75 percent LTV) Full recourse required. Longer hold preference aligns with 15 to 20 year amortizations. Slower approval cycle (60 to 90 days) but tight pricing for strong tenants.
CMBS conduit lender 7.10 to 7.60 percent fixed $2.5M to $3.2M (70 to 80 percent LTV) Non-recourse structure available. Agency rating preferred but not required. Execution-focused with 45 to 60 day timeline. Works well for portfolio or multi-property structures.
Credit union net lease correspondent 6.95 to 7.40 percent fixed $1.6M to $2.4M (60 to 70 percent LTV) Often recourse. Shorter average loan terms (10 to 15 years). Faster closing (20 to 30 days). Strong product for borrowers with established banking relationships.

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 on $4 million medical NNN acquisitions in Charlotte include established net lease investors with $25 million to $150 million in portfolio assets, experienced operators with 10 to 20 prior transactions, and 1031 exchange buyers trading up from smaller single-tenant assets. Motivations range from acquisition and accumulation of yield-producing assets to refinancing at better terms on existing Charlotte-area medical or professional office properties. Most are seeking 5.5 to 7.5 percent yielding assets with tenants rated BBB minus or better, minimal lease rollover risk in the next 3 to 5 years, and stable expense growth.

From the CLS CRE Pipeline

A Real $4M Example

CLS CRE recently closed a $3.8 million non-recourse CMBS loan on a medical office building leased to a health system operator in the Ballantyne submarket, 20 minutes south of Uptown Charlotte. The borrower, a 1031 exchange buyer from the Midwest, was looking to deploy capital into a single A-credit tenant with 12 years remaining on the lease and annual 2 percent escalators. We structured the deal at 72 percent LTV with a 20 year amortization and locked in a 7.05 percent fixed rate through a regional conduit lender, generating a 5.2 percent cash-on-cash yield at stabilization. The borrower closed in 52 days and now enjoys monthly net lease collections with no landlord maintenance obligations, exactly the outcome they sought from the exchange.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$4M Medical NNN Acquisition Charlotte FAQ

Charlotte's population growth averaging 2.5 to 3.5 percent annually, combined with a strong healthcare employment base and high median household income, creates stable demand for medical office and dental services. Lenders view Charlotte tenants as less cyclical than Atlanta or Nashville peers and appreciate the low unemployment rate relative to national averages. Additionally, most Charlotte medical facilities serve established health systems or DSOs with investment-grade ratings, which tightens spreads by 30 to 50 basis points versus smaller regional players.
Yes, non-recourse structures are widely available at 70 to 75 percent LTV through CMBS conduit lenders and select life companies, though pricing typically runs 25 to 50 basis points higher than recourse debt. National banks generally require full or limited recourse for loans under $5 million, particularly if the tenant credit is below A minus. Most borrowers in this size range accept limited recourse (capped at rent deposits or lease guarantees) rather than pursuing full non-recourse, which adds cost and complexity.
Lenders strongly prefer 10 to 20 year remaining lease terms, with initial fixed rates dropping 15 to 25 basis points for leases longer than 12 years. Leases shorter than 8 years are considered higher risk and typically receive 60 to 100 basis point rate penalties or reduced LTV eligibility. A 12 to 15 year remaining term with annual escalators of 2 to 3 percent is the sweet spot for Charlotte medical lenders and unlocks the tightest pricing.
Charlotte medical NNN cap rates currently range from 4.5 to 6.5 percent depending on tenant credit and lease length, with AAA grade single-tenant assets trading at 4.5 to 5.2 percent and secondary tenants at 5.5 to 6.5 percent. Tighter cap rates mean lower NOI denominator, which pressures maximum LTV; borrowers on 5.0 percent yielding properties at 72 percent LTV face tight DSCR headroom. Most lenders require a minimum 1.25 to 1.35x DSCR, which often constrains LTV to 65 to 70 percent on lower-yielding assets regardless of the tenant's credit rating.
National banks and credit unions typically close in 20 to 45 days if underwriting is clean and the tenant credit is strong, while life insurance companies often require 60 to 90 days due to their committee-based approval processes. CMBS conduit lenders split the difference, averaging 45 to 60 days with potential for acceleration if due diligence is straightforward. Borrowers can expect appraisal, title, and tenant estoppel to consume 15 to 25 days, so front-loading documentation and working with experienced servicers accelerates the path to funding.


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