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

$5 Million NNN Acquisition in Denver

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $5 million single-tenant net lease acquisition in Denver reflects the strong investor appetite for stabilized, long-term leased assets in the Denver metro market. At this loan size, borrowers typically target investment-grade or credit-strong tenants with 10 to 15 year remaining lease terms, positioning deals for non-recourse or limited-recourse financing at 65 to 75 percent LTV. Lenders active in this space include national banks with dedicated STNL programs, CMBS conduits, and life insurance companies, all competing aggressively for quality credits in Denver's growing suburban and downtown corridors. Current market rates for this loan size sit around 6.75 percent, reflecting CMT-based pricing plus modest spreads for investment-grade tenant credit.

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Capital Stack

What a $5M NNN Acquisition Capital Stack Looks Like

Capital stack decisions at the $5 million level hinge primarily on tenant credit, lease length, and whether the buyer is a 1031 exchange investor or a portfolio operator. National banks dominate this segment because their STNL programs offer speed, flexibility, and pricing that matches or beats CMBS and life companies on shorter decision timelines. Borrower equity position, prior sponsorship track record, and the desire for non-recourse terms typically drive the final lender selection.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL program 6.50 to 7.00 percent fixed, CMT plus 275 to 325 basis points $3.5M to $5.0M; 70 to 75 percent LTV on investment-grade tenant Fastest execution (20 to 30 days), full recourse or carve-out recourse standard, appetite for 1031 exchanges, pre-underwriting available
Life insurance company 6.60 to 7.10 percent fixed, 10 to 20 year term preferred $2.0M to $5.0M; 65 to 70 percent LTV depending on lease strength Non-recourse available at 60 to 65 percent LTV, longer closing (35 to 50 days), lower rate if lease term exceeds 12 years, full asset-level underwriting required
CMBS conduit lender 6.75 to 7.25 percent fixed, weighted average life of 6 to 8 years $4.0M to $5.0M minimum; 65 to 70 percent LTV Non-recourse structure, loan must perform, longer underwriting and securitization timeline (60 to 90 days), best for institutional quality tenants with pristine credit
Regional credit union or community lender 6.80 to 7.30 percent fixed, relationship-based pricing available $2.0M to $5.0M; 60 to 70 percent LTV Faster execution than life companies, recourse standard, strong fit for local or owner-operator sponsors with Denver market presence

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 at the $5 million NNN level include seasoned 1031 exchange investors with $10 million to $50 million in cumulative acquisitions, as well as smaller portfolio operators seeking to add income-producing assets to their Denver-area holdings. These borrowers typically have 10 to 20 years of commercial real estate experience, prior lender relationships, and net worth between $2 million and $10 million. Primary motivations include capturing long-term stable cash flow from investment-grade tenants, deploying capital from prior sales, or leveraging recent refinance proceeds into a larger acquisition.

From the CLS CRE Pipeline

A Real $5M Example

CLS CRE closed a $4.8 million acquisition financing for a 1031 exchange buyer acquiring a single-tenant retail asset in the southeast Denver submarket leased to a regional grocer on an 12-year absolute triple net lease. The borrower, an experienced investor with prior portfolio of four similar assets, submitted a clean application with 10 years of audited financials and prior recourse loan payoff history. A national bank with an active STNL program approved and closed the deal in 24 days at 6.68 percent fixed on a 10-year amortization schedule with standard recourse carve-outs (environmental, intentional misrepresentation, bankruptcy fraud). The 72 percent LTV was justified by the tenant's investment-grade credit and the strong 7.8 percent cap rate.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$5M NNN Acquisition Denver FAQ

Most lenders require investment-grade tenants (Moody's: Baa3 and higher, S&P: BBB- and higher) or national credit chains with strong unit-level economics to offer non-recourse debt. For non-recourse, expect LTV to cap at 60 to 65 percent and the lender to require a full debt service coverage ratio of 1.25x or better. Recourse financing can push to 70 to 75 percent LTV even with lower-rated tenants, as long as the lease term is solid and your personal guarantee is strong.
National bank STNL programs typically close in 20 to 30 days from full application submission; life companies usually require 35 to 50 days due to more rigorous asset appraisal and lease review. CMBS conduits take the longest (60 to 90 days) because of securitization and investor review, but offer the most certainty and tightest pricing once they commit. Starting the pre-underwriting process early (even before signed purchase agreement) can accelerate bank timelines by 1 to 2 weeks.
CMT-based programs are pricing at CMT plus 275 to 325 basis points (effectively 6.50 to 7.10 percent all-in, depending on tenant credit and lease term). Life companies and CMBS lenders tend to price 10 to 40 basis points tighter than banks on stronger tenant credits, but require lower LTV to earn that discount. Fixed rates across all platforms are holding around 6.75 percent for a quality 12 to 15 year lease and 70 percent LTV deal.
Yes, nearly all national banks and life companies actively finance 1031 exchange acquisitions, and they expect to see Section 1031 language in the purchase agreement. The lender will verify that your prior sale was a qualifying 1031 exchange and that you are within the 45-day identification window and 180-day closing window when you submit your loan application. Having clear documentation of your 1031 exchange timeline and the like-kind property designation speeds underwriting and can unlock faster approval.
Loan terms (maturity) typically run 10 to 20 years, with 10 to 15 year terms most common at this loan size. Amortization schedules usually match the loan term (fully amortizing), though some life companies offer 25 to 30 year amortization with a 10 to 15 year balloon, reducing annual cash flow burden on borderline deals. Banks often offer 10 year terms with step-down recourse (recourse drops after 5 years) as a middle ground for experienced sponsors.


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