$6M Fitness NNN Acquisition Dallas | Commercial Lending Solutions 
Loan Size Example

$6 Million Fitness Center NNN Acquisition in Dallas

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $6 million fitness center acquisition on a triple-net lease in Dallas represents a core-plus play for experienced net lease buyers seeking stable, long-term income in a growing market. Dallas has emerged as a top-tier fitness destination, with strong demographic tailwinds and high household formation supporting premium gym concepts across Preston Hollow, Uptown, and suburban corridors. At this loan size, borrowers typically secure 65 to 75 percent LTV financing from national banks with single-tenant net lease programs, life insurance companies, or conduit lenders, with all-in rates landing in the 6.50 to 7.00 percent range depending on tenant credit, lease term, and non-recourse status. Most deals close in 45 to 60 days with minimal underwriting friction, provided the tenant is investment-grade or strong-credit regional operator and the lease extends 10 years or longer.

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Capital Stack

What a $6M Fitness NNN Acquisition Capital Stack Looks Like

Capital stack approach at $6 million is straightforward: a single senior lender provides the entire debt, typically a national bank with a dedicated STNL platform, a life insurance company seeking core-plus net lease paper, or a CMBS conduit. Lender selection hinges on tenant credit quality, lease length, exit flexibility, and borrower recourse appetite. One-off debt funds and credit unions also compete for this size, but national banks dominate due to their CMT-indexed rate advantage and faster execution.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL program 6.50 to 6.90 percent, CMT plus 275 to 325 basis points 4.0 to 4.5 million (66 to 75 percent LTV) Full recourse or limited non-recourse carveouts; amortization 25 to 30 years; DSC requirement typically 1.15x to 1.25x; preferred execution for investment-grade tenants and deals under $10 million
Life insurance company 6.75 to 7.10 percent, fixed rate or SOFR-based 3.6 to 4.5 million (60 to 75 percent LTV) Non-recourse or limited recourse; 30-year amortization; slower underwriting (60 to 90 days) but flexible structuring; appetite for mid-credit tenant (BBB range) and 12+ year lease terms
CMBS conduit lender 6.80 to 7.25 percent, typically fixed 3.6 to 4.5 million (60 to 75 percent LTV) Non-recourse at closing; seasoning or certificate period not required for STNL; stricter tenant covenants; 25 to 30 year amortization; longer timeline (75 to 90 days) due to rating agency and trustee review
Regional credit union or specialty debt fund 6.90 to 7.35 percent, floating or fixed 3.0 to 3.6 million (50 to 60 percent LTV) Limited non-recourse; shorter amortization (20 to 25 years) or interest-only periods common; relationship-based pricing; faster execution (30 to 45 days) for repeat borrowers

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 $6M Fitness NNN Acquisition Deal

The typical $6 million fitness NNN buyer in Dallas is an experienced net lease investor with $15 million to $50 million in net worth and a portfolio of 5 to 20 single-tenant net lease assets. This profile includes 1031 exchange buyers seeking tax-deferred acquisition of institutional-quality fitness assets, institutional real estate funds rotating capital into core-plus net lease, and regional developers locking in long-term yield on a stabilized asset. Motivation is usually portfolio growth, yield enhancement, or redeployment of proceeds from prior sales, with minimal value-add expectation and full reliance on tenant execution and lease escalations.

From the CLS CRE Pipeline

A Real $6M Example

CLS closed a $5.8 million financing for a newly constructed premium fitness center in a Dallas suburban market in early 2025. The borrower, an experienced net lease investor, acquired the property with a 12-year triple-net lease to a regional fitness operator with strong credit metrics. CLS placed the debt with a national bank at 6.62 percent fixed, 72 percent LTV, full recourse, and 30-year amortization, closing in 52 days. The deal benefited from the property's lease escalation (3 percent annual step), strong location demographic, and the lender's appetite for fitness assets in growth corridors; the borrower obtained non-recourse carve-out relief on casualty and condemnation, reducing recourse risk.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$6M Fitness NNN Acquisition Dallas FAQ

Most lenders require the tenant to be investment-grade (BBB or higher) or a strong regional operator with 5 to 10 years of operating history and demonstrable financial stability. A mid-market fitness operator with solid EBITDA margins, growing membership, and no near-term recapitalization need can still qualify for 68 to 72 percent LTV, but expect a 25 to 50 basis point rate premium and stricter covenants.
Yes, non-recourse is widely available from life insurance companies and CMBS conduits at 60 to 68 percent LTV, and from some national banks at lower LTV (55 to 65 percent). Full recourse at higher LTV (72 to 75 percent) is standard; borrowers seeking non-recourse should expect a 15 to 40 basis point rate premium and stricter tenant credit or lease term requirements.
National bank STNL programs close in 45 to 60 days from application to funding. Life insurance companies require 60 to 90 days due to internal review and appraisal procedures. CMBS conduits take 75 to 90 days due to rating agency review and trustee sign-off. All timelines assume clean tenant financials, current lease, and no title, zoning, or environmental issues.
1031 exchange buyers represent a significant portion of single-tenant net lease acquisitions at this size in Dallas. Lenders price them the same as cash buyers; the exchange status itself does not affect rate or terms. However, shorter closing timelines requested by exchange buyers may result in a modest rate premium (10 to 15 basis points) if the lender must expedite underwriting or waive certain conditions.
Leases of 10 years or longer with annual escalations (typically 2 to 3 percent) are strong risk mitigants and support higher LTV (72 to 75 percent) and lower rates. Shorter leases (7 to 9 years) or flat-rate leases may reduce LTV by 3 to 5 points and increase rates by 20 to 40 basis points. Lenders view escalations as inflation protection and tenant retention signal, so robust CPI or fixed-step clauses are highly valued in underwriting.


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