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

$4 Million Medical NNN Acquisition in Phoenix

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $4 million medical or dental net lease acquisition in Phoenix represents a core-plus entry point for experienced CRE investors seeking stabilized, long-term tenant relationships in Arizona's growing healthcare footprint. These deals typically feature investment-grade or high-quality independent tenants with 10 to 20-year initial lease terms, triple net structures that shift operating risk to the tenant, and cap rates in the 5.5 to 6.5 percent range depending on tenant profile and lease length. Lenders in this space include national banks with established single-tenant net lease programs, life insurance companies seeking yield, CMBS conduits, and regional credit unions active in healthcare finance. Phoenix's healthcare real estate market has attracted increasing institutional capital, making this loan size highly executable with leverage ranging from 65 to 75 percent LTV for stronger credit tenants.

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Capital Stack

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

Capital stack decisions at the $4 million level in Phoenix typically hinge on tenant credit quality, remaining lease term, and the borrower's recourse capacity. National banks dominate this space due to faster execution and greater flexibility on tenant substitution clauses, while life companies and CMBS players become more competitive when lease terms exceed 15 years or when borrowers seek non-recourse structures.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL program CMT plus 1.75 to 2.25 percent, approximately 7.00 to 7.50 percent all-in $2.6 to $3.0 million, 65 to 75 percent LTV Fastest execution, recourse typically required, 30 to 45-day close, strong appetite for investment-grade tenants, flexible on lease extension language
Life insurance company Fixed rate 6.75 to 7.25 percent, spread over Treasuries $2.4 to $3.2 million, 60 to 75 percent LTV Longer term, 10 to 20-year fixed preferred, non-recourse available at 60 to 70 percent LTV, longer underwriting timeline but more patient capital
CMBS conduit lender 7.25 to 7.75 percent including servicing fees $2.8 to $3.6 million, 60 to 70 percent LTV Larger loan pools, standardized underwriting, non-recourse, higher upfront costs, best for sponsor refinancing or portfolio plays
Regional credit union 7.00 to 7.50 percent, negotiable on recourse $1.5 to $2.5 million, 60 to 70 percent LTV Arizona-based lenders active in medical real estate, relationship-driven, faster decisions for repeat borrowers, typically recourse but flexible

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

Sponsors closing $4 million medical NNN deals in Phoenix typically have $10 to $50 million in net worth, five to twenty prior transactions, and established relationships with lender origination teams. Many are 1031 exchange buyers seeking tax-deferred replacements from appreciated office or retail assets, while others are institutional operators building single-tenant healthcare portfolios. Experience-level ranges from seasoned individual investors to small real estate platforms; key differentiators include clean underwriting packages, strong credit profiles, and clear investment theses around tenant stability and demographic tailwinds in Arizona.

From the CLS CRE Pipeline

A Real $4M Example

In late 2024, we closed a $3.8 million acquisition financing for a two-tenant medical office property in the Ahwatukee submarket of Phoenix. The sponsor was a 1031 exchange buyer seeking stable, long-term cash flow from a traded-out retail center; both tenants were independent physicians with 12-year initial lease terms and investment-grade credit history. We placed the loan with a national bank at 7.15 percent fixed for 20 years on a full-recourse basis, achieving 70 percent LTV with a 1.25x debt service coverage ratio. The deal closed in 38 days with minimal tenant interruption, and the sponsor benefited from the non-call period and rate certainty for long-term hold positioning.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$4M Medical NNN Acquisition Phoenix FAQ

Investment-grade single-tenant medical leases with 15-year terms typically qualify for 70 to 75 percent LTV with national banks and life companies. Non-investment-grade independent tenants or shorter lease terms (under 10 years) typically cap at 60 to 70 percent LTV. CMBS lenders may be more conservative, remaining in the 60 to 68 percent range depending on tenant substitution rights and lease extension language.
Yes, non-recourse is available primarily through life insurance companies and CMBS conduits, typically at 60 to 70 percent LTV with strong credit tenants. National banks generally require recourse due to their portfolio hold approach, though some may negotiate a carve-out structure. Expect longer underwriting timelines and slightly higher rates for non-recourse programs.
National banks with established single-tenant programs close in 30 to 50 days with full documentation and appraisal. Life companies and CMBS lenders typically require 45 to 75 days due to larger committee structures and standardized due diligence protocols. Regional credit unions can move faster (25 to 40 days) if the sponsor has a relationship and clean financials.
Current indicative rates for this size and property type are 7.00 to 7.50 percent, depending on tenant credit, lease length, and lender type. National banks typically price 7.00 to 7.25 percent all-in; life companies run 6.75 to 7.25 percent fixed; CMBS runs 7.25 to 7.75 percent including servicing. Rates assume investment-grade tenants with 10 to 20-year lease terms and 65 to 75 percent LTV.
Investment-grade national or regional healthcare operators, independent physicians or dental practices with strong credit and longevity, and established medical DSOs are preferred. Lenders scrutinize independent practices heavily on personal guarantees and tenant turnover history; DSO tenants benefit from platform strength and multi-location stability. Single-location or under-capitalized tenants will face LTV reductions or higher rates.


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