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

$5 Million NNN Acquisition in Nashville

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $5 million NNN acquisition in Nashville represents the sweet spot for single-tenant net lease financing in the current market. These deals typically involve established tenants on strong leases in Nashville's core corridors (Green Hills, West End, Murfreesboro Pike submarkets) and attract a broad lender base ranging from national banks to life companies and CMBS conduits. Pricing in the 6.75 percent range reflects solid credit tenants and lease lengths of 10 to 15 years, with LTV commonly landing between 65 to 72 percent depending on tenant rating and remaining lease term. Nashville's flight-to-quality demand and tenant diversification make this loan size highly competitive and well-suited to 1031 exchange buyers seeking stable, non-participating income.

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Capital Stack

What a $5M NNN Acquisition Capital Stack Looks Like

A $5 million NNN acquisition in Nashville draws interest from multiple capital sources, but national banks with established single-tenant net lease programs and life insurance companies dominate this size band. Lender selection typically hinges on lease length, tenant credit quality, asset location within Nashville's submarkets, and whether the borrower requires recourse or prefers non-recourse leverage.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL program 6.50 to 6.85 percent fixed, CMT-based pricing $3.25 to $3.75 million at 65 to 72 percent LTV 5 to 7 year fixed rate, full recourse common for investment-grade tenants, 30 to 40 day close typical
Life insurance company 6.70 to 7.10 percent fixed $2.5 to $3.5 million at 60 to 70 percent LTV 10 to 15 year fixed rate, non-recourse available at 60 to 65 percent LTV, longer funding timeline of 45 to 60 days
CMBS conduit lender 6.75 to 7.25 percent fixed $2 to $3 million at 65 to 75 percent LTV 10 year fixed, scoreboard mentality favors strong DSCR above 1.35x, loan structure includes IO period option
Regional credit union 6.40 to 6.80 percent fixed $1.5 to $2.5 million at 65 to 70 percent LTV Full recourse preferred, faster close for established borrower relationships, limited loan size availability

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 Nashville are seasoned 1031 exchange investors or small institutional buyers with $15 million to $50 million in CRE holdings and 5 to 10 prior acquisitions. These borrowers prize cap rate stability, long lease certainty, and tax-deferred growth through 1031 exchanges rather than value-add upside. Net worth commonly ranges from $5 million to $25 million, and most are familiar with balance sheet management, debt service coverage modeling, and the importance of tenant credit rating to pricing and structure.

From the CLS CRE Pipeline

A Real $5M Example

CLS CRE arranged $4.8 million in non-recourse financing for a suburban-outparcel food retailer lease with 12 years remaining in the Green Hills submarket. The borrower, a 1031 exchange investor from an office portfolio sale, sought maximum leverage and true non-recourse structure. A life company committed at 6.68 percent fixed for 12 years at 65 percent LTV, with a 50 basis point rate credit for a 90 day IO period. Close occurred in 52 days, and the borrower is now positioned to defer capital gains while collecting stable NOI of $294,000 annually.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$5M NNN Acquisition Nashville FAQ

Most lenders will finance $3.25 to $3.75 million (65 to 72 percent LTV) for investment-grade tenants with 10 to 15 year remaining lease term. Lower-rated tenants or shorter leases typically cap at 60 to 65 percent LTV. Non-recourse leverage generally maxes out at 65 percent LTV unless the tenant is nationally recognized and the lease is long.
Yes. Nashville's consistent population growth, strong retail and food service tenant demand, and established lending infrastructure in the market typically result in tighter spreads and faster closes compared to secondary markets. Core corridors like Green Hills and West End see the most aggressive pricing and best terms.
Not significantly, provided the borrower has sufficient liquidity and a clear track record of prior exchanges. Lenders view 1031 buyers as committed long-term holders with lower default risk. Timeline pressure is noted, but experienced borrowers typically close in 30 to 60 days without special accommodations.
Lease term is critical to non-recourse pricing and availability. Leases of 12 years or longer with renewal options favor non-recourse structures at 60 to 65 percent LTV. Leases below 10 years typically require full or partial recourse, or lower LTV. Life companies and CMBS lenders scrutinize lease expiration closely because it determines asset-level cash flow certainty.
National banks with established STNL programs typically close in 30 to 40 days. Life insurance companies generally require 45 to 60 days due to longer underwriting and approval cycles. CMBS conduits can range 45 to 75 days depending on the size and complexity of the loan pool. Clear title, recent rent rolls, and complete financials accelerate all timelines.


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