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

$6 Million Fitness Center NNN Acquisition in Denver

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $6 million fitness center acquisition on a triple-net lease in Denver represents a stable, single-tenant investment play that appeals to experienced net lease buyers and 1031 exchange investors. Denver's strong population growth and affluent suburban markets support consistent foot traffic for fitness operators, making these deals attractive to lenders focused on tenant credit and long-term lease stability. At this size and with investment-grade or strong regional tenant credit, borrowers typically achieve 65 to 75 percent LTV with rates in the 6.50 to 7.00 percent range, depending on lease length, operator track record, and whether the deal is structured as a full acquisition or refinance of an existing cash-flowing asset.

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Capital Stack

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

National banks with established single-tenant net lease platforms dominate the $6 million fitness financing market in Denver, followed by life insurance companies and specialized CMBS conduit lenders. Lender selection hinges on tenant credit rating, remaining lease term (longer terms attract better pricing), and whether the borrower wants recourse or non-recourse debt; regional lenders and credit unions occasionally compete on rate but lack the volume and speed of national players.

Capital Source Rate / Cost Size / LTV Notes
National bank (STNL program) 6.50 to 6.85 percent, CMT-based with 225 to 275 basis point spread $4.5M to $5.25M (70 to 75 percent LTV) Fastest execution, recourse or non-recourse options at lower LTV, favors investment-grade or strong regional operators with 10 to 15 year remaining lease term
Life insurance company 6.70 to 7.10 percent, fixed rate $3.6M to $4.8M (60 to 80 percent LTV) Longer hold appetite, 20 to 30 year amortization, non-recourse available at 65 to 70 percent LTV, patient pricing for blue-chip tenants, slower closing timeline (60 to 90 days)
CMBS conduit lender 6.75 to 7.25 percent, fixed rate plus annual servicing fees $3M to $5.4M (50 to 90 percent LTV) Typically non-recourse, strong appetite for multi-unit or portfolio fitness deals, loan-level underwriting more granular, 8 to 10 week closing, requires full tenant estoppel and environmental Phase I
Regional credit union or community bank 6.90 to 7.35 percent, prime-based or CMT-based $1.8M to $3.6M (30 to 60 percent LTV) Recourse only, faster decision-making for known sponsors, limited appetite for leverage, good fit for down-payment capital or co-lending partnerships

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

Typical sponsors closing $6 million fitness NNN acquisitions in Denver are experienced net lease investors with $20 million to $100 million+ in managed assets, often with prior successful single-tenant or small portfolio acquisitions under their belt. Many are 1031 exchange buyers seeking a stable, long-term replacement property with minimal capital expenditure requirements and predictable cash flow; others are institutional buyers or family offices expanding their Denver footprint into essential services real estate. These sponsors generally carry strong balance sheets, credit scores above 700, and personal net worth of $5 million or more.

From the CLS CRE Pipeline

A Real $6M Example

CLS CRE closed a $5.8 million refinance of a five-year-old, 15,000-square-foot fitness center in the Cherry Creek submarket of Denver for a sponsor with existing experience in single-tenant NNN acquisitions. The property was operated by a large regional fitness chain with strong demographic reach across the Denver metro, and the remaining lease term was 12 years with 3 percent annual escalations. The lender, a national bank with a dedicated STNL platform, approved the deal at 72 percent LTV with a 6.68 percent fixed rate over a 25-year amortization, securing non-recourse debt and enabling the sponsor to redeploy approximately $1.2 million into additional acquisition activity. The deal closed in 38 days with minimal repair requirements and no environmental delays.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$6M Fitness NNN Acquisition Denver FAQ

With investment-grade or strong regional operator credit and a lease term of 10 to 15 years remaining, most borrowers achieve 65 to 75 percent LTV. If the operator is smaller or the lease is shorter (under 7 years), expect 55 to 65 percent LTV and higher rates by 25 to 50 basis points. Life insurance companies occasionally go as high as 80 percent LTV for blue-chip tenants with longer remaining terms, but will price that leverage accordingly.
Yes, but with conditions. National banks typically offer non-recourse at 65 to 70 percent LTV or lower; life insurance companies frequently go non-recourse at 65 to 75 percent LTV for strong credits with long remaining lease terms. CMBS conduit lenders are almost always non-recourse by structure. Expect a 10 to 25 basis point premium for non-recourse versus recourse, and stronger credit / longer lease requirements.
National banks close in 35 to 50 days once conditions are clear; life insurance companies take 60 to 90 days due to thorough underwriting and internal approval cycles. CMBS conduits fall in between at 50 to 70 days, with additional time for loan-level due diligence and environmental / estoppel documentation. Refinances typically close faster than acquisitions because there is existing operational history.
1031 exchange buyers represent a significant portion of net lease acquisition demand in Denver, particularly investors coming out of appreciation events in tech or multifamily. These buyers prioritize timing certainty and lease length over maximum leverage, and often accept slightly lower rates in exchange for fast, predictable closings. Lenders appreciate 1031 buyers because they tend to have strong equity positions and lower recourse risk.
The lender's recourse is limited to the lease: they receive rent through the lease maturity (or until lease termination and property disposition). Most quality fitness NNN deals are structured so that the tenant remains operationally strong throughout the lease term; if tenant distress is anticipated, lenders require shorter lease terms, lower leverage, or higher credit tenants. As a borrower, your exit risk is primarily tied to the tenant's long-term viability and your ability to re-lease or sell the asset post-maturity.


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