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

$6 Million Fitness Center NNN Acquisition in Houston

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $6 million fitness center NNN acquisition in Houston represents a core-plus, stabilized net lease investment that appeals to 1031 exchange buyers and conservative equity holders seeking long-term income. In the Houston market, these single-tenant fitness deals typically feature BBB- to BBB tenant credit, 10 to 15 year remaining lease terms, and 4.5 to 5.5 percent cap rates at current underwriting. Lenders remain active in this category despite rate volatility, with leverage commonly ranging from 60 to 70 percent LTV depending on tenant durability, location strength, and lease structure. At an indicative 6.75 percent rate, this loan size sits at the intersection of national bank STNL programs and life company appetite, making execution straightforward for experienced sponsors.

Get a Quote on Your $6M Deal →
Capital Stack

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

The capital stack for a $6 million Houston fitness NNN breaks into two primary sources: a national bank or regional bank STNL program offering CMT-based floating or fixed rate products, paired with equity from the sponsor or 1031 buyer. Lender selection hinges on lease length, tenant credit, property location within Houston (Westside, Uptown, and Medical Center corridors command tighter spreads), and the sponsor's appetite for fixed versus floating exposure.

Capital Source Rate / Cost Size / LTV Notes
National bank STNL program 6.50 to 6.90 percent fixed, or CMT plus 140 to 160 basis points floating $4.2M to $4.5M (70 percent LTV) Loan committee approval in 3 to 4 weeks, full recourse to sponsor, prepay penalty typically 1 percent year one declining, strong preference for primary tenant brands with Houston presence
Life insurance company 6.65 to 7.05 percent fixed, or T-Bill plus 155 to 175 basis points $3.8M to $4.2M (63 to 70 percent LTV) 30 to 45 day underwriting, non-recourse available at 60 percent LTV or below, interest-only periods available for 1031 buyers, longer hold preference aligns with net lease investment strategy
CMBS conduit lender 6.75 to 7.25 percent fixed $3.6M to $4.2M (60 to 70 percent LTV) Larger pools targeting $6M to $7M loan sizes, 2 to 3 week rate lock availability, non-recourse structure standard, servicer involvement and annual recertification required
Credit union or specialty STNL fund 6.80 to 7.35 percent fixed $3M to $3.6M (50 to 60 percent LTV) Faster closing timeline (10 to 15 days), more flexible recourse negotiation, common for sponsors with existing banking relationships, smaller typical deal volume means rate shop flexibility

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 sponsor acquiring a $6 million Houston fitness NNN holds $15 million to $50 million in liquid net worth, demonstrates 3 to 5 prior net lease or single-tenant acquisitions, and operates as either an experienced 1031 exchange buyer transitioning out of operational real estate or a small to mid-market CRE investment firm seeking recurring net lease income. Motivations range from 1031 redeployment following a property sale to portfolio diversification away from rent-assumption risk and tenant management overhead. These sponsors value certainty, predictability, and non-recourse or limited-recourse structures that allow capital efficiency across multiple acquisitions.

From the CLS CRE Pipeline

A Real $6M Example

CLS CRE financed a 35,000 square foot fitness center acquisition in the Houston Uptown submarket for $5.8 million on a 12-year NNN lease with a BBB- tenant operator. The sponsor was a repeat 1031 buyer with experience across three prior net lease investments. We placed the loan with a national bank STNL program at 6.68 percent fixed, 65 percent LTV, full recourse with a rate lock of 21 days and closing in 32 days. The tenant's strong operational track record in the Houston market and the property's location on a major retail corridor drove the favorable rate; the 4.8 percent exit cap rate and in-place rental rate growth clause satisfied the sponsor's income and appreciation objectives. The deal closed in late Q2 2024.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$6M Fitness NNN Acquisition Houston FAQ

National bank STNL programs prefer BBB- to BBB credit ratings, though BBB+ operators command pricing advantage. Large national and regional fitness chains with multiple Houston locations are favored; single-location independents face 40 to 80 basis point rate penalties or leverage reduction. Lenders will consider operator tenure, member retention rates, and comparable facility performance in the Houston metro as credit substitutes.
Non-recourse is available at 60 percent LTV or lower from life companies and CMBS conduits; at 65 to 70 percent leverage, you typically see limited recourse (carveouts for fraud, environmental, lease violation) or full recourse. National banks generally require full recourse at this deal size and structure, though guarantor net worth requirements may be waived at lower LTV. Rate for non-recourse runs 30 to 50 basis points higher than full recourse.
National bank STNL programs close in 25 to 35 days from application; life companies take 35 to 50 days; CMBS conduits run 20 to 30 days once rate locked. Closing acceleration depends on the lease quality, tenant financials (typically 2 to 3 years of tax returns and current financials), property appraisal (done in parallel), and any requested surveys or phase one environmental. 1031 exchange timelines can compress these windows, making early lender engagement critical.
Lease terms of 10 to 15 years remaining generate the tightest rates and best leverage; below 8 years, lenders reduce LTV by 5 to 10 percent and increase rates 25 to 50 basis points. Escalation clauses, percentage rent, or renewal options are underwriting bonuses. Houston fitness center deals with strong tenants, 12 year leases, and 3 percent annual escalation attract the most competitive national bank and life company bids.
Uptown, Westside, and the Medical Center corridor command tighter spreads (rates 15 to 30 basis points better) and higher leverage because of foot traffic density and tenant stability. Inner-loop and prime retail corridors attract national lenders; outlying suburban fitness locations face leverage caps at 60 percent and rate premiums of 40 to 75 basis points. Mixed-use or lifestyle centers housing fitness anchors outperform standalone pad locations in lender appetite and pricing.


Get a Quote on Your $6M Deal

Tell us about your transaction. We will run it past lenders that actively fund this size and product type and send back terms within 48 hours.

Apply for Financing →
Or call us: 310.708.0690

Weekly Market Intelligence

Rate updates, deal insights, and capital markets analysis. One email per week. Unsubscribe anytime.

No spam. No selling your data. Just market intelligence from a working broker.

Need financing? Apply in 2 minutes. Response within 24 hours.
Apply Now →
📈

Before You Go…

Get matched with the right lender from our network of 1,000+ capital sources.

Or call us: 310.708.0690

No spam. Unsubscribe anytime.