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

$4 Million Medical NNN Acquisition in Denver

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $4 million medical NNN acquisition in Denver represents a core-plus play for experienced net lease investors seeking stable, long-term cash flow in a resilient submarket. Denver's healthcare real estate has outperformed many western metros due to population growth and strong tenant demand from regional and national operators. At this size and with a medical tenant of investment-grade or strong regional credit, lenders typically advance 65 to 75 percent loan-to-value, pricing near 7.00 percent depending on lease length, tenant strength, and remaining term. This deal tier attracts national bank STNL programs, life insurance companies, and CMBS conduits competing aggressively for seasoned tenants and experienced sponsors.

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Capital Stack

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

National banks with established single-tenant net lease programs dominate the $4 million medical NNN space in Denver, largely because their CMT-based pricing and efficient underwriting timelines suit 1031 exchange buyers and institutional sponsors operating on tight close deadlines. Life insurance companies and credit unions also compete actively, particularly when lease terms exceed 10 years or when the sponsor prefers non-recourse leverage at slightly lower LTV. Lender selection typically hinges on tenant credit strength, remaining lease term, and whether the buyer prioritizes speed, loan flexibility, or non-recourse structure.

Capital Source Rate / Cost Size / LTV Notes
National bank (STNL program) 7.00 to 7.35 percent, CMT-based with margin 270 to 310 bps $2.6M to $3.0M (65% to 75% LTV) Recourse to sponsor; 30 to 45 day close; prepay penalty 1 to 3 years; favors tenants with Moody's or S&P investment-grade or strong regional credit
Life insurance company 6.95 to 7.40 percent fixed; occasionally 50 to 75 bps lower on 15+ year leases $2.4M to $3.2M (60% to 80% LTV) Non-recourse at lower LTV; slower underwriting (60 to 90 days); strong appetite for medical and dental; minimum lease term typically 8 to 10 years
CMBS conduit (trophy collateral pools) 7.15 to 7.65 percent; priced to yield for pooling $2.8M to $4.0M (70% to 75% LTV) Recourse; larger loan pools preferred; medical NNN must have 10+ year lease remaining and single A or better tenant credit; 45 to 60 day close
Credit union or regional bank (relationship-based) 7.05 to 7.45 percent; potential rate reduction for deposits or relationship $2.2M to $3.2M (55% to 80% LTV) Flexibility on occupancy and term length; strong for local Denver operators or 1031 exchangers with banking relationships; 30 to 50 day close

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 sponsors closing $4 million medical NNN acquisitions in Denver are experienced net lease investors with $10 million to $50 million in portfolio assets and a track record of 5 to 15 prior single-tenant deals. Many are 1031 exchange buyers rolling proceeds from prior sales, seeking cap rates in the 5.50 to 6.50 percent range with AAA or A-rated tenants and lease terms of 10 to 20 years. Motivations include portfolio stabilization, repositioning capital into Denver's growing healthcare market, or refinancing maturing debt into longer-term, fixed-rate structures.

From the CLS CRE Pipeline

A Real $4M Example

We closed a $3.85 million fixed-rate acquisition loan on a medical office building occupied by a regional dental group with strong local presence in the Denver metro area. The property carried a 12-year remaining lease term at stable rates, and the borrower brought 28 percent equity. A national bank STNL program advanced 72 percent LTV at 7.02 percent with full recourse, pricing based on a 10-year CMT plus 285 basis points and a 2-year prepay penalty. The sponsor, an experienced net lease fund, closed in 32 days and held the asset for long-term passive income, realizing a 5.75 percent blended yield on equity after accounting for debt service and tenant credit strength.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$4M Medical NNN Acquisition Denver FAQ

National banks and CMBS lenders typically require investment-grade credit (Moody's/S&P single A or better) or strong regional credit with 5+ year operating history and positive financials. Life companies show more flexibility on regional tenants and may accept BBB range credit if the lease is longer than 12 years and the rent coverage is healthy. Anything below BB-rated will require significant equity or a co-signer, driving costs higher.
Yes, life insurance companies routinely offer non-recourse or limited-recourse structures at 60 to 70 percent LTV on medical NNN deals with 10+ year lease terms and solid tenant credit. Some national banks will offer non-recourse at 55 to 60 percent LTV if the tenant is investment-grade and lease term exceeds 12 years, but this is less common and often slower. Non-recourse pricing typically runs 15 to 50 basis points higher than full recourse due to the additional lender risk.
$4 million medical NNN deals typically finance at 65 to 75 percent LTV with strong tenants and 10+ year leases; weaker credit or shorter terms may see 60 to 65 percent LTV. Most sponsors bring 25 to 35 percent equity to hit institutional lender thresholds and demonstrate commitment. Non-recourse deals frequently stay at 60 to 70 percent LTV to offset the lender's credit risk.
National bank STNL programs typically close in 30 to 45 days with full documentation and appraisal; CMBS conduits run 45 to 60 days due to pooling and investor review. Life insurance companies are slower, often taking 60 to 90 days, but offer more flexibility and may waive some conditions for strong borrowers. 1031 exchange buyers should allow 45 to 60 days minimum and provide lenders with advance notice to meet their exchange timelines.
National bank STNL programs typically feature 1 to 3 year yield maintenance or 1 to 3 percent fixed prepay penalties, with some extending to 5 years. CMBS conduits require full defeasance (substitution with like-kind replacement mortgages) for early payoff, or occasional make-whole clauses, making prepayment expensive. Life insurance companies often have more flexible prepay terms, sometimes allowing penalty-free payoff after year 5 to 7 depending on the deal structure and loan size.


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