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

$4 Million Medical NNN Acquisition in Nashville

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $4 million medical net lease acquisition in Nashville represents a bread-and-butter deal size for single-tenant NNN buyers across Tennessee's health care corridor. Typical structures involve a physician practice, urgent care, or dental office with 10 to 20 years remaining on the lease, anchored by an investment-grade or regional operator tenant. Lenders in this bucket prioritize tenant credit and lease durability over property type, with financing available at 7.00 percent fixed from national banks, regional credit unions, and life insurance platforms. LTV ranges from 60 to 75 percent depending on tenant strength and remaining lease term, making this the sweet spot for 1031 exchange buyers and buy-and-hold operators seeking passive income with minimal tenant supervision.

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Capital Stack

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

Capital sources for $4 million Nashville medical NNN deals cluster around national banks with established single-tenant net lease programs and regional life companies with appetite for sub-$5 million medical credits. Lender selection turns on three variables: tenant credit rating, lease length remaining, and borrower experience with NNN mechanics. Non-recourse financing and longer fixed terms become competitive differentiators at this size.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL program 6.85 to 7.15 percent fixed, CMT-based pricing $2.4 million to $3.2 million (60 to 75 percent LTV) Full-term fixed rates, 25-year amortization, recourse to guarantor. Closes in 30 to 45 days. Prefers A- or better tenant credit.
Regional life insurance company 7.00 to 7.50 percent fixed $2.0 million to $2.8 million (50 to 70 percent LTV) Patient underwriting, 25 to 30-year terms available, full recourse. Strong preference for healthcare-related tenants and 15+ year remaining lease term.
Regional credit union with commercial platform 7.10 to 7.40 percent fixed $1.6 million to $2.5 million (40 to 65 percent LTV) Local market knowledge valuable. Typically requires 10 to 20 percent equity cushion and full personal guarantee. 20 to 25-year amortization.
CMBS conduit lender 7.25 to 7.75 percent all-in, floating or fixed option $3.0 million to $4.0 million (75 percent LTV max) Non-recourse available at lower LTV (60 percent). Longer timeline (60 to 75 days). Appetite for pooled deals; single $4M loans less common but available.

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 deals in Nashville are established 1031 exchange investors, family offices, and small institutional buyers with $10 million to $50 million in investable assets. Most have completed 3 to 10 prior single-tenant acquisitions and understand NNN lease mechanics, tenant recapture, and long-term hold expectations. Motivations split evenly between tax-deferred exchange closures, portfolio diversification away from multifamily, and acquisition of high-credit medical tenants offering 4.50 to 5.50 percent initial cap rates.

From the CLS CRE Pipeline

A Real $4M Example

A multi-state operator closed a $4.05 million loan in Nashville for a 12,500-square-foot dental practice on a 15-year triple-net lease with a regional dental DSO. The borrower, a seasoned 1031 investor, was seeking a replacement property following a prior office building sale. A regional bank offered fixed-rate financing at 7.02 percent over 25 years at 74 percent LTV with full recourse to guarantor. Underwriting took 38 days; lease review confirmed tenant was current and well-capitalized. The property appraised at $5.4 million, supporting the leverage. Borrower closed and has held the asset through year one with zero tenant issues and on-time rent receipt.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$4M Medical NNN Acquisition Nashville FAQ

Most national banks and life companies target A- credit or better, though regional operators with 5 to 10 years of audited financials can qualify at BB+ to BBB-. Healthcare-specific lenders will go lower if the underlying provider (physician group, dental DSO, or surgical center) has strong market position and cash reserves. Credit rating alone does not drive approval; remaining lease term and tenant leverage matter equally.
Non-recourse is available from CMBS conduit lenders and some life companies, but only if you accept lower LTV (55 to 60 percent vs. 65 to 75 percent with recourse). Pricing typically runs 40 to 75 basis points higher. National banks almost never offer non-recourse at this deal size and almost always require a personal guarantee from the principal.
National bank programs and regional life companies close in 35 to 50 days from complete application. CMBS conduits take 60 to 75 days due to pooling and investor review steps. Lease review and tenant verification are the longest poles; lenders will request original lease, estoppel, financials, and rent roll within the first week.
Investment-grade tenants (A- and above) with 15+ years remaining typically trade at 4.50 to 5.25 percent cap rates. Regional operators and regional credit tenants yield 5.25 to 6.00 percent. Spread narrows for longer lease terms and blue-chip tenants; spreads widen for single-operator practices or shorter remaining terms. Nashville medical cap rates sit near national averages due to strong population growth and physician supply in the metro area.
Critical. Lenders want minimum 10 years remaining, but prefer 15 to 20 years to cover loan amortization and provide tenant renewal visibility. A deal with only 8 years remaining will be rejected or require a guarantor with sufficient net worth to absorb lease expiration risk. Remaining lease term directly impacts LTV approval and interest rate; shorter terms drive lower leverage and higher rates.


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