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

$6 Million Fitness Center NNN Acquisition in Nashville

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $6 million fitness center NNN acquisition in Nashville represents a core-plus entry point for experienced net lease investors seeking stable, long-term cash flow in a growing market. These deals typically feature investment-grade or near-investment-grade tenants on 10 to 15 year net leases, with cap rates in the 5.5 to 6.75 percent range reflecting Nashville's strong demographic tailwinds and fitness sector resilience. Lenders for this size fall into three categories: national banks with dedicated single-tenant net lease platforms, regional CMBS conduit programs, and life insurance companies seeking diversified portfolios. At $6 million, leverage ranges from 60 to 75 percent LTV depending on tenant credit, lease length, and sponsorship strength, with rates indexed to CMT and spread commonly running 175 to 275 basis points over the benchmark.

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Capital Stack

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

The capital stack for a $6 million fitness NNN deal in Nashville is straightforward, dominated by either a single primary lender or a senior-junior structure. Sponsors with strong balance sheets and prior net lease experience typically access a national bank's single-tenant program first, as these lenders price aggressively and offer non-recourse optionality at moderate LTV. If leverage requirements push above 70 percent or the tenant profile sits just below institutional grade, a credit union or regional life company becomes competitive, often with slightly higher rates but greater flexibility on structure and recourse.

Capital Source Rate / Cost Size / LTV Notes
National bank (single-tenant net lease platform) CMT + 200 to 250 basis points (6.5 to 7.0 percent range) $3.6M to $4.5M (60 to 75 percent LTV) Non-recourse available at 65 percent LTV or lower; 5 to 10 year fixed terms; CMT-indexed with annual resets; preferred for investment-grade tenants and primary capital source
Regional CMBS conduit lender Fixed 6.75 to 7.25 percent (all-in) $4.2M to $4.8M (70 to 80 percent LTV) Full recourse; longer underwriting window (45 to 60 days); appetite for leases 7 years or longer; popular for sponsor balance sheet efficiency
Life insurance company Fixed 6.5 to 7.15 percent (all-in) $3.6M to $4.2M (60 to 70 percent LTV) Non-recourse available; longer-term financing (10 to 15 years); slower process (60 to 90 days); strong hold for sponsors seeking low-volatility portfolios
Credit union (net lease specialty program) Prime + 225 to 275 basis points (6.75 to 7.25 percent range) $3.0M to $4.2M (50 to 70 percent LTV) Flexible recourse terms; faster closing (25 to 40 days); emerging lender for mid-market deals; less stringent tenant credit requirements than banks

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 Nashville is a net worth 1031 exchange investor or a smaller institutional sponsor with $15 million to $75 million in portfolio assets and prior net lease experience. These sponsors are often transitioning capital from another property sale, seeking yield stability and predictable debt service, and running 5 to 20 completed net lease transactions. Motivations center on tax-deferred portfolio rotation (1031), portfolio diversification into a resilient asset class, and long-term hold strategies aligned with retirement or fund-level liquidity planning.

From the CLS CRE Pipeline

A Real $6M Example

CLS CRE closed a $5.8 million fitness center NNN acquisition in the East Nashville submarket on behalf of a 1031 exchange sponsor with $40 million in prior acquisitions. The property was triple-net to a national fitness operator on an 12 year lease with 3 percent annual bumps, carrying a 6.2 percent in-place cap rate. We structured 70 percent LTV through a national bank's single-tenant platform at 6.75 percent fixed, 10 year amortization, non-recourse terms, closing in 38 days. The sponsor deployed the capital as the final leg of a two-property 1031 exchange, locking in sub-7 percent blended cost of capital across the portfolio.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$6M Fitness NNN Acquisition Nashville FAQ

A national or large regional fitness operator with investment-grade or BB+ credit standing, positive same-store sales trends, and EBITDA margins above 15 percent will access 70 to 75 percent LTV from primary lenders. Smaller, unrated operators with strong local market presence and lease term of 12 years or longer may reach 65 to 70 percent LTV through regional CMBS or life companies, typically at 25 to 50 basis points higher rates.
Yes, non-recourse is available through national banks and life companies, but typically requires 65 percent LTV or lower and investment-grade tenant credit. Some lenders offer partial recourse (guaranty of lease commencement or first 2 years of debt service) at higher LTV bands to bridge the gap; this is common in the 65 to 70 percent range.
Nashville's population growth of 2.0 to 2.5 percent annually and strong office-to-residential conversion activity have stabilized fitness center occupancy and membership trends, making the asset class competitive for lenders. Rates for strong fitness tenants in Nashville are roughly 25 to 50 basis points lower than secondary markets, with lenders comfortable underwriting longer lease terms and offering modest leverage increases compared to 2022 pricing.
Most lenders offer 10 year amortization over either 10 year fixed terms or 5 to 7 year fixed-rate periods with annual CMT resets thereafter. Life companies and some CMBS programs extend to 15 year amortization, allowing lower monthly debt service and higher DSCR cushion for sponsors managing multiple properties or seeking maximum yield capture.
Bank programs close in 30 to 45 days with clean underwriting files; life companies run 60 to 90 days due to longer investment committees; CMBS conduits typically close in 45 to 60 days. Credit unions often deliver the fastest timelines (25 to 35 days) but may require additional sponsor verification if the operation is new or off-market.


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