$5M QSR Portfolio Sale-Leaseback | Commercial Lending Solutions 
Loan Size Example

$5 Million QSR Portfolio Sale-Leaseback Financing

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $5 million QSR portfolio sale-leaseback nationwide typically involves 3 to 8 quick-service restaurant locations leased to investment-grade or upper-middle-market operators under triple-net agreements. These deals leverage national and regional bank platforms, life insurance companies, and CMBS conduit lenders who actively compete for stabilized, credit-tenanted single-tenant portfolios. Loan-to-value ranges from 60 to 75 percent depending on tenant credit rating and remaining lease term, with rates hovering around 6.50 percent in the current environment. Most deals involve 1031 exchange buyers seeking long-term hold positions with minimal tenant management burden.

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Capital Stack

What a $5M QSR Portfolio Sale-Leaseback Capital Stack Looks Like

Capital stacks for $5 million QSR portfolios are typically straightforward: one senior lender funds the full amount via a traditional term loan structure. National banks with established single-tenant net lease programs dominate this size because they can execute quickly, offer non-recourse options at conservative LTVs, and price competitively against life insurance companies and credit union alternatives. Lender selection usually hinges on speed, recourse tolerance, flexibility on lease-back rates, and the sponsor's relationship history rather than on subordinated capital needs.

Capital Source Rate / Cost Size / LTV Notes
National bank (STNL program) 6.35 to 6.75 percent, CMT-based plus 225 to 275 basis points $5M at 65 to 72 percent LTV Senior position, non-recourse available below 70 percent LTV, 10-year fixed-rate term, 30-day closing timeline, flexible prepay with step-down penalty
Life insurance company 6.40 to 6.80 percent, fixed-rate conduit-style pricing $5M at 60 to 70 percent LTV Full recourse, lower leverage appetite, longer underwriting cycle (45 to 60 days), strong preference for A+ tenant credit, 10 to 12 year term
CMBS conduit lender 6.50 to 7.00 percent, floating-rate SOFR plus spread or fixed-rate option $5M at 65 to 75 percent LTV Senior position in securitization pool, loan-level recourse, standard CMBS underwriting (60 to 90 days), prepay lock for 5 to 7 years with yield maintenance
Credit union or regional bank 6.25 to 6.65 percent, portfolio hold (non-securitized) $5M at 60 to 70 percent LTV Full or partial recourse, sponsor relationship-driven, 30 to 45 day close, lower documentation burden, more flexibility on lease rate and tenant tweaks

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 QSR Portfolio Sale-Leaseback Deal

Typical sponsors for $5 million QSR portfolios are experienced net lease investors with $50 million to $500 million in AUM or net worth, often managing 1031 exchange proceeds or executing a liquidity event from a prior hold. They typically have closed 10 to 30 net lease transactions and are motivated by portfolio consolidation, refinance of maturing loans, or acquisition of stabilized operator relationships in secondary and tertiary markets. Many are repeat borrowers seeking non-recourse financing and minimal ongoing asset management, with a 7 to 10 year hold horizon.

From the CLS CRE Pipeline

A Real $5M Example

CLS CRE arranged $4.8 million in financing for a 5-unit QSR portfolio across the Southeast (mix of Chattanooga, Nashville, and Louisville markets) leased to a regional QSR operator with 12 years remaining on the initial lease term. A national bank with an active STNL portfolio originated the loan at 6.48 percent fixed, 69 percent LTV, 10-year amortization, and non-recourse structure. The sponsor was a 1031 exchange buyer exiting a single-tenant office property, and the bank closed within 28 days with minimal contingencies. The deal stabilized at a 4.8 percent cap rate for the sponsor, and the operator has since executed a 5-unit expansion, signaling strong unit economics.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$5M QSR Portfolio Sale-Leaseback FAQ

Portfolio deals offer lenders geographic diversification, larger single-loan capacity, and often stronger sponsor sophistication and recourse. Lenders also benefit from longer-duration relationships and cross-selling opportunities. A portfolio also demonstrates operational scale for the tenant, reducing perceived risk of a sole-operator default.
Remaining lease term is a primary leverage driver: lenders typically require minimum 8 to 10 years remaining to fund above 65 percent LTV. Each year below 10 years can reduce LTV by 0.5 to 1.5 percent or add 10 to 25 basis points to pricing. Lenders prioritize longer-dated rents because they mirror debt maturities and reduce refinance risk.
Non-recourse is typically available below 65 to 70 percent LTV, depending on lender and tenant credit. Above 70 percent LTV, expect full or partial sponsor recourse. Some lenders offer limited recourse (guaranty on lease performance only, not loan balance) at 70 to 75 percent LTV to expand lending appetite.
National banks and credit unions typically close in 25 to 35 days. Life companies and CMBS conduits take 45 to 90 days due to deeper underwriting and investor committee reviews. Speed often depends on portfolio quality, tenant financials transparency, and sponsor credit profile; pre-underwriting and clear title can shorten timelines significantly.
Yes, 1031 buyers represent 30 to 40 percent of the demand in this size and asset class, especially post-sale transactions. They tend to accept lower returns (4.5 to 5.5 percent cap rates) for tax-deferred reinvestment, which can pressure pricing for pure financial buyers but creates stable, long-duration debt demand among lenders.


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