$5M NNN Acquisition Charlotte | Commercial Lending Solutions 
Loan Size Example

$5 Million NNN Acquisition in Charlotte

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $5 million net lease acquisition in Charlotte is a bread-and-butter deal for regional and national lenders with established single-tenant net lease programs. Charlotte's growing economy and stable tenant base make it an attractive market for 1031 exchange buyers and buy-and-hold investors seeking 5 to 7 percent cap rates on investment-grade properties. Lenders typically offer leverage in the 60 to 75 percent LTV range depending on tenant credit, remaining lease term, and tenant profile. Rates currently sit around 6.75 percent on a CMT-based index with 10 year fixed rate options available at premium pricing.

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Capital Stack

What a $5M NNN Acquisition Capital Stack Looks Like

At this deal size, a national bank with a dedicated STNL program or a regional credit union typically wins the mandate. Lender selection hinges on tenant quality, lease duration, and sponsor profile: investment-grade tenants with 8 to 12 year remaining lease terms attract the most aggressive pricing, while sponsors with substantial net worth and prior net lease experience unlock non-recourse options and lower rates.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL program 6.50 to 7.00 percent fixed $3.75M to $4.5M at 65 to 75 percent LTV CMT-based index, 10 year term standard, non-recourse available at 70 percent LTV or lower with investment-grade tenant
Regional credit union 6.75 to 7.25 percent fixed $2.5M to $3.75M at 60 to 70 percent LTV Faster approvals, relationship pricing favors repeat sponsors, recourse typically required above 65 percent LTV
Life insurance company 6.25 to 6.75 percent fixed $3M to $5M at 60 to 75 percent LTV Longer underwriting, 10 to 15 year fixed terms available, strict lease length and tenant credit requirements, non-recourse available
CMBS conduit lender 6.65 to 7.15 percent fixed $4M to $5M at 65 to 70 percent LTV Largest loan size capacity, whole-loan sale option post-closing, 10 year term, recourse carve-outs standard

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 $5M NNN Acquisition Deal

The typical sponsor on a $5 million NNN acquisition in Charlotte is either a 1031 exchange buyer with $1.5 to $3 million in liquidity and prior real estate ownership experience, or a buy-and-hold investor with $2 to $5 million in net worth and 2 to 5 prior net lease deals closed. Many are owner-operators of small businesses who view net lease properties as passive long-term hold vehicles with minimal management burden. Sponsors are motivated by consistent cash flow, estate planning, or redeployment of capital from a prior sale.

From the CLS CRE Pipeline

A Real $5M Example

A 15,000 square foot automotive service building on the outskirts of Charlotte, occupied by a national quick-service tenant with strong credit rating, financed at $4.2 million, 6.68 percent fixed, 72 percent LTV, 10 year term, with non-recourse structure. Sponsor was a 1031 exchange buyer looking to redeploy proceeds from a prior commercial sale and close within 45 days. A national bank with regional STNL presence won the deal on execution speed and rate aggressiveness; the lender ordered a Phase I environmental and ALTA survey only, waiving property inspection given tenant strength and five-year-old build quality. Deal closed on time with no conditions and a 90 day rate lock extension.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$5M NNN Acquisition Charlotte FAQ

Most lenders target tenants rated BBB- or higher by S&P, or local/regional operators with 3 to 5 year credit history and positive personal guarantees. National retailers and service chains (restaurants, automotive, health) are preferred. Lenders will move on sub-investment-grade tenants only if the sponsor has strong equity cushion (40 percent down or more) and lease term exceeds 8 years.
Yes, but only at lower leverage. Most lenders offer non-recourse at 65 to 70 percent LTV on investment-grade tenants with 8 to 12 year leases remaining. Life companies and some national banks are most accommodating on non-recourse; regional lenders typically require personal guarantees unless tenant is AAA-rated or a major national chain. Non-recourse pricing is typically 25 to 50 basis points higher than recourse.
Most deals close in 30 to 60 days. National banks and credit unions move fastest (30 to 45 days); life companies typically need 45 to 75 days for document review and approval. Rate locks are typically 60 days and can be extended. Sponsor should expect to provide 2 years of personal tax returns, proof of funds, and prior real estate experience documentation within 5 business days of application.
Expect 5.50 to 6.75 percent cap rates depending on tenant quality, lease length, and submarket location. Investment-grade tenants in established Charlotte submarkets (South Park, Ballantyne, Uptown fringe) often trade at 5.50 to 6.00 percent. Secondary markets and longer-dated leases may offer 6.25 to 6.75 percent. Most sponsors underwrite 1.15 to 1.25 DSCR to ensure comfortable coverage above the debt service payment.
Charlotte's low unemployment and steady population growth make it an attractive net lease market; lenders are actively competing for deals here. Rising interest rates have compressed spreads over Treasuries, but deal flow remains strong. Most lenders are flexible on lease structure and tenant substitution language provided the sponsor has prior net lease experience and strong equity in the deal.


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