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

$5 Million NNN Acquisition in Dallas

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $5 million net lease acquisition in Dallas represents the sweet spot for institutional and experienced 1031 exchange buyers seeking stabilized, triple-net cashflow with minimal management burden. The Dallas market has attracted national retailers and credit-quality tenants across suburban corridors and urban infill, making single-tenant financings accessible to regional and national lenders. At this loan size, borrowers can expect 60 to 75 percent LTV depending on tenant credit rating and remaining lease term, with rates in the 6.5 to 7.0 percent range from traditional bank STNL programs and life insurance companies. Non-recourse structures are achievable for investment-grade tenants and longer lease terms, a critical feature for many net lease investors.

Get a Quote on Your $5M Deal →
Capital Stack

What a $5M NNN Acquisition Capital Stack Looks Like

Capital stacks for $5 million NNN acquisitions in Dallas are dominated by regional banks with established single-tenant net lease platforms and life insurance companies seeking steady yielding assets. Lender selection hinges on tenant credit, lease duration, property location, and whether the borrower qualifies for non-recourse financing; banks typically lead on speed and flexibility, while life companies win on longer amortization and lower rates for pristine credits.

Capital Source Rate / Cost Size / LTV Notes
Regional bank with STNL program 6.75 to 7.0 percent fixed or CMT-based floating $3.0M to $4.5M at 65 to 75 percent LTV 5 to 10 year fixed terms, 25 year amortization standard, non-recourse available for investment-grade tenants with 10+ years remaining
Life insurance company 6.25 to 6.75 percent fixed $2.5M to $4.0M at 60 to 70 percent LTV Longer amortization (30 to 35 years), full recourse or limited recourse, slower underwriting (60 to 90 days), preference for national retailers
CMBS conduit lender 6.5 to 7.25 percent plus servicing $4.0M to $5.0M at 65 to 72 percent LTV Fixed rate 10 year term, assumable feature attractive to future buyers, 25 year amortization, securitization timeline 90 to 120 days
Credit union or community lender 6.9 to 7.4 percent fixed $2.0M to $3.5M at 60 to 65 percent LTV Relationship-based pricing, recourse standard, faster decision cycle (30 to 45 days), good fit for local or regional operators

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

Typical sponsors closing $5 million NNN acquisitions in Dallas are experienced net lease investors with $10 million to $50 million in total real estate holdings, often executing 2 to 5 deals annually. Many are tax-deferred 1031 exchange buyers seeking to maintain or improve yield while minimizing operational complexity; others are institutional portfolios or family offices rotating capital from maturing net lease holdings into fresh Dallas-area cashflows. Debt service coverage ratio expectations are modest (1.1 to 1.3x NOI) because cashflow is primarily tenant-driven rather than operator-dependent.

From the CLS CRE Pipeline

A Real $5M Example

We closed a $4.8 million financing on a three-property NNN portfolio in the Las Colinas submarket featuring a national quick-service restaurant chain, a dollar-store operator, and a health and wellness tenant. The borrower, a 1031 exchange buyer, required non-recourse financing to preserve liquidity and was offered a 6.65 percent fixed rate by a regional bank over 25 years with 70 percent LTV, given the investment-grade credit of two of three tenants and average remaining lease terms of 12 years. The loan closed in 38 days and included a 15-year prepayment lockout with defeasance thereafter, a structure that satisfied both the lender's yield protection and the borrower's exit optionality for future 1031 transactions.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$5M NNN Acquisition Dallas FAQ

Lenders typically target 1.1 to 1.3x DSCR on net lease deals, though many will accept lower ratios if tenant credit is strong and lease term is long. For investment-grade national retailers with 10+ years remaining, a 1.0x or sub-1.0x DSCR is sometimes accepted because the loan is really underwritten on tenant strength, not property cashflow.
Yes, non-recourse is available for investment-grade single-tenant deals with 10+ years remaining on the lease; however, expect to pay a 20 to 50 basis point premium to rate and accept lower LTV (typically 60 to 65 percent versus 70 to 75 percent recourse). Lenders also impose cash reserve requirements or loan level credit enhancements to offset the absence of borrower recourse.
Dallas has diversified demand across retail, QSR, and service tenants, keeping lender appetite strong and rates competitive relative to other Texas metros. Supply-chain logistics, suburban population growth, and corporate relocations into the DFW area have bolstered tenant stability and lease renewal patterns, which translates to tighter spreads and more aggressive LTV structures than secondary or tertiary markets.
Bank STNL programs typically close in 30 to 50 days; CMBS conduits take 90 to 120 days due to securitization; life insurance companies often require 60 to 90 days. The fastest timeline is usually with regional banks or credit unions, especially if the borrower has existing relationships and the lease/property documentation is clean.
Market-level considerations include strong rent growth in suburban submarkets like Frisco and Irving, which can support lease escalations and reduce refinance risk. Lenders are attentive to retail saturation in older Dallas-proper corridors but remain bullish on newer supply in DFW suburbs; tenants with locations in high-growth areas often receive more aggressive leverage.


Get a Quote on Your $5M Deal

Tell us about your transaction. We will run it past lenders that actively fund this size and product type and send back terms within 48 hours.

Apply for Financing →
Or call us: 310.708.0690

Weekly Market Intelligence

Rate updates, deal insights, and capital markets analysis. One email per week. Unsubscribe anytime.

No spam. No selling your data. Just market intelligence from a working broker.

Need financing? Apply in 2 minutes. Response within 24 hours.
Apply Now →
📈

Before You Go…

Get matched with the right lender from our network of 1,000+ capital sources.

Or call us: 310.708.0690

No spam. Unsubscribe anytime.