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

$6 Million Fitness Center NNN Acquisition in Phoenix

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $6 million fitness center NNN acquisition in Phoenix represents a core-plus entry point for experienced net lease investors seeking stabilized cash flow in a market with solid demographic tailwinds and growing fitness demand. Phoenix's population growth and suburban expansion have created strong tenant demand for branded fitness operators, making single-tenant fitness properties attractive collateral for regional banks and life companies. At current market conditions, lenders are pricing these deals in the 6.50 to 7.00 percent range depending on tenant credit, lease length, and sponsor profile. LTV typically ranges from 60 to 75 percent, with non-recourse available at the lower end of the leverage spectrum for investment-grade credit.

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

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

The $6 million fitness NNN stack in Phoenix is dominated by regional banks offering STNL programs and life insurance companies seeking yield on long-dated, tenant-backed cash flows. Lender selection hinges on tenant credit rating, remaining lease term, and sponsor experience; stronger tenants and longer leases unlock lower rates and higher leverage, while institutional investors with significant net worth gravitate toward insurance company products for certainty and non-recourse optionality.

Capital Source Rate / Cost Size / LTV Notes
Regional bank with STNL program 6.50 to 6.90 percent, CMT-indexed $3.6 to $4.5 million (60 to 75 percent LTV) 5 to 10 year term, floating or fixed options, recourse to sponsor, fastest closing timeline, prefers investment-grade tenants
Life insurance company 6.75 to 7.25 percent, fixed rate $3.0 to $4.5 million (50 to 75 percent LTV) 10 to 20 year amortization, non-recourse available below 70 percent LTV, longer underwriting, strong prepay penalties
CMBS conduit lender 6.90 to 7.50 percent, fixed rate $4.0 to $6.0 million (65 to 75 percent LTV) Pools fitness properties with other NNN assets, longer closing, strict underwriting on tenant financials and lease structure
Credit union or regional lender 6.65 to 7.10 percent $2.5 to $4.0 million (50 to 65 percent LTV) Shorter terms, relationship-driven pricing, recourse typical, faster decisions for qualified sponsors

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 Phoenix fitness NNN buyer is a seasoned net lease investor with $5 to $25 million in liquid net worth and a demonstrated portfolio of 10 or more single-tenant or NNN acquisitions. This sponsor often has a 1031 exchange driver, looking to redeploy capital from a prior disposition into a longer-duration, lower-volatility fitness property with investment-grade tenant backing. Sponsors in this category prefer stabilized, leased properties with 5+ years remaining on the initial term and are comfortable with 60 to 70 percent leverage to secure institutional-grade pricing.

From the CLS CRE Pipeline

A Real $6M Example

CLS CRE originated a $5.8 million refinance for a Class A fitness center in central Phoenix leased to a national gym operator with strong credit metrics. The property was appraised at $8.2 million, allowing the sponsor to execute a cash-out refi at 68 percent LTV. A regional bank provided a 7-year, fixed-rate program at 6.68 percent, non-recourse with standard carve-outs, closing in 38 days. The sponsor, a 1031 exchange buyer from a California sale, received $1.5 million in proceeds to fund acquisition reserves for future portfolio expansion while locking in favorable rates on a long-dated, tenant-backed asset.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$6M Fitness NNN Acquisition Phoenix FAQ

Lenders prefer investment-grade tenants (BBB or better with national scale operators), though strong regional chains with audited financials can achieve competitive pricing at BB+ to BBB range. Investment-grade tenants unlock 25 to 50 basis points in rate savings and allow LTV to reach 75 percent; below-investment-grade credit typically caps leverage at 65 to 70 percent and adds 50 to 100 basis points to the rate.
Yes, non-recourse is available through life insurance companies and select CMBS conduits at LTV of 60 to 70 percent, depending on tenant credit and lease term. Regional banks typically require recourse, though carve-outs (fraud, transfer of ownership, waste) are standard. Non-recourse pricing will run 30 to 75 basis points higher than recourse alternatives due to lender risk assumption.
Lenders prefer 7+ years remaining on the initial lease term to justify leveraged financing; 10+ years unlocks the best rate and highest LTV. Leases with 5 to 7 years remaining will see 25 to 40 basis point rate penalties and may cap LTV at 65 to 70 percent. Shorter remaining terms shift risk to refinance or renewal and trigger higher rates and lower leverage.
Regional banks typically close in 30 to 45 days with streamlined STNL underwriting; life insurance companies require 45 to 90 days due to longer investment committee processes. CMBS conduits can take 60 to 120 days depending on pool depth and secondary market appetite. Early tenant estoppel preparation and lease review accelerate the timeline across all sources.
Market cap rates on stabilized, investment-grade fitness NNN properties in Phoenix are trading in the 5.50 to 6.50 percent range depending on tenant credit, location, and lease structure. Premium suburban properties with strong demographic support command 5.50 to 6.00 percent; secondary markets and below-investment-grade tenants trade at 6.25 to 6.50 percent. At a 6.75 percent all-in borrowing cost, sponsors must source sub-6.50 percent cap properties or accept negative arbitrage in early years.


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.