Loan Size Example

$5 Million NNN Acquisition in Seattle

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $5 million NNN acquisition in Seattle represents a sweet spot for experienced net lease investors seeking core-plus risk with institutional-grade tenant creditworthiness. In 2026, this deal size attracts strong lender appetite across national bank platforms, CMBS conduits, and life insurance companies competing for stable, long-term cash flow assets in the Pacific Northwest. Cap rates for investment-grade single-tenant net leases in Seattle typically run 5.25 to 6.25 percent, with leverage available at 65 to 75 percent LTV depending on tenant rating, lease length, and market positioning. Most borrowers financing at this volume target non-recourse or limited-recourse structures, with rate indices tied to CMT (Constant Maturity Treasury) benchmarks plus spreads in the 175 to 275 basis points range.

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Capital Stack

What a $5M NNN Acquisition Capital Stack Looks Like

Capital stack discipline drives lender selection in the Seattle NNN market. A national bank with an established single-tenant net lease program typically leads origination, offering fixed-rate terms of 10 to 20 years, tight pricing, and streamlined underwriting that values investment-grade tenant credit and remaining lease term above property-level metrics.

Capital Source	Rate / Cost	Size / LTV	Notes
National bank with STNL program	6.50 to 7.00 percent (CMT-based, fixed term)	$3.25M to $3.75M at 65 to 75 percent LTV	Primary lender for investment-grade tenants; 15 to 20 year amortization; non-recourse available below 70 percent LTV; fast closing (30 to 45 days)
Life insurance company	6.75 to 7.25 percent (fixed rate)	$1.5M to $2.5M at 60 to 70 percent LTV	Appetite for longer lease terms and strong tenants; 20 to 30 year fixed term; balance sheet lending; patient capital; underwriting deeper dive on tenant financials
CMBS conduit lender	6.60 to 7.10 percent (SOFR-based, step-up structure)	$1.5M to $2.5M at 60 to 75 percent LTV	Competitive for A-plus quality tenants; interest-only available first 3 to 5 years; non-recourse standard; 10 year loan term; assumes investor sophistication
Regional credit union or community bank	6.90 to 7.50 percent (variable or fixed hybrid)	$500K to $1.5M at 60 to 65 percent LTV	Secondary source for smaller portions or borrowers with local banking relationships; faster decision-making; may carry recourse; portfolio holdback alternative to securitization

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 acquisition level in Seattle include seasoned 1031 exchange investors with $10 million to $50 million net worth, 10 plus years of CRE experience, and a track record of 3 to 15 prior acquisitions. Many are repeat borrowers seeking tax-deferred capital redeployment or portfolio consolidation into institutional-grade net lease assets; others are forward-thinking operators looking to lock in long-term predictable income in a stabilizing rate environment. These borrowers value certainty and accept lower cap rates in exchange for covenant-light structures and the ability to hold long-term without active management.

From the CLS CRE Pipeline

A Real $5M Example

We closed a $4.8 million fixed-rate financing on a convenience store and gas station in a strong suburban Seattle submarket, occupied by a national operator with 15 years remaining on the lease. The borrower, a 1031 exchange buyer moving capital from a similar asset, locked in a 6.68 percent fixed rate through a national bank program at 72 percent LTV with a 20 year amortization and full non-recourse structure. Loan proceeds funded the acquisition with minimal capital required from the borrower, who benefited from immediate positive cash flow and predictable DSCR running 1.28x. The deal closed in 38 days, demonstrating how institutional net lease lenders reward high-credit tenants and clear buyer intent.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$5M NNN Acquisition Seattle FAQ

Lenders competing for this deal size prefer investment-grade tenants rated BBB-minus or better by S&P or Moody's, or unrated national operators with clear cash flow and balance sheet strength. Investment-grade credit opens access to non-recourse financing and the tightest pricing; below-investment-grade tenants will face 50 to 100 basis points of rate premium and higher recourse carve-outs. Most national banks and life companies have formal credit acceptance policies that tier pricing and leverage based on tenant rating.

1031 exchange buyers often receive faster underwriting approval and slightly tighter pricing because exchange timing certainty and documented investor intent reduce perceived execution risk. Lenders also recognize that exchange buyers are often moving seasoned portfolios into similar asset classes, demonstrating discipline and repeat borrowing likelihood. However, underwriting standards for property quality, lease terms, and tenant credit remain identical regardless of buyer motivation.

Most lenders want to see a minimum of 7 to 10 years remaining lease term, with 12 plus years preferred for non-recourse structures and best pricing. Loans with less than 5 years remaining on a single tenant's lease face significant pricing penalties and lower LTV availability, as refinance risk and tenant replacement risk rise sharply. Lenders also evaluate renewal options and tenant track record; a strong operator with renewal rights may be viewed more favorably even with shorter stated lease term.

Recourse generally does not materially reduce rate pricing on NNN acquisitions, because lender credit focus is on tenant strength and property value, not sponsor balance sheet. Recourse may help a sub-investment-grade tenant or weaker lease structure secure approval at a given LTV, but savings are typically minimal (10 to 25 basis points at most). Non-recourse financing is table stakes at 70 percent LTV and below for most national lenders, making it the preferred structure for experienced sponsors.

National bank lenders with established STNL programs close in 30 to 45 days with clean documentation and high-credit tenants; life companies typically take 45 to 60 days due to deeper financial underwriting on tenant cash flow and balance sheet. CMBS conduits generally run 45 to 75 days and require more extensive property appraisals and legal review, though they offer competitive rate and non-recourse standard. Clean title, lease clarity, and prepared tenant financials can accelerate any lender's timeline by one to two weeks.

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$5 Million NNN Acquisition in Seattle

What a $5M NNN Acquisition Capital Stack Looks Like

Who Closes a $5M NNN Acquisition Deal

A Real $5M Example

$5M NNN Acquisition Seattle FAQ

Get a Quote on Your $5M Deal

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