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

$6 Million Fitness Center NNN Acquisition

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $6 million fitness center net lease acquisition is a core institutional deal size nationwide, attracting both experienced 1031 exchange buyers and institutional sponsors seeking stable, long-term cashflow. These single-tenant net lease deals typically feature investment-grade or high-quality regional fitness operators on 10 to 15 year triple-net leases, with cap rates ranging from 5.5 to 6.75 percent depending on tenant credit, lease length, and property condition. Lenders in this category compete aggressively because the risk profile is predictable: the tenant covers insurance, taxes, and maintenance, leaving the landlord with pure NOI exposure and strong debt service coverage ratios. At the $6 million level, you'll see participation from national banks with dedicated single-tenant programs, life insurance companies, CMBS conduit lenders, and select credit unions.

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Capital Stack

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

The $6 million fitness NNN acquisition typically stacks into a single senior debt position, with one institutional lender providing 60 to 75 percent loan-to-value depending on tenant strength and lease term. National banks with established STNL programs dominate this size because they can underwrite quickly, offer stable rates indexed to CMT curves, and provide non-recourse structures at moderate LTV levels. Life companies and conduit lenders become competitive when lease terms exceed 12 years or tenant credit reaches investment-grade threshold, often pricing 10 to 25 basis points tighter than banks.

Capital Source Rate / Cost Size / LTV Notes
National bank (STNL program) 6.5 to 7.1 percent $4.2 to $4.8 million (70 to 80 percent LTV) CMT-indexed rate, 15 to 20 day close, full recourse or limited recourse carve-outs, prepayment flexible after year 3 to 5, anchor lender for most sponsors
Life insurance company 6.25 to 6.85 percent $3.6 to $4.5 million (60 to 75 percent LTV) Fixed rate, 30 to 45 day underwriting, non-recourse available at 65 percent LTV or lower, prefers 12 to 15 year lease terms, strong appetite for investment-grade tenants
CMBS conduit lender 6.4 to 7.0 percent $3.6 to $4.5 million (60 to 75 percent LTV) CMT-based floating or fixed term swaps, 60 to 90 day securitization timeline, non-recourse standard, stricter lease language and environmental requirements, less common for single $6M deals
Regional credit union (STNL specialist) 6.6 to 7.25 percent $2.4 to $3.6 million (40 to 60 percent LTV) Relationship-driven pricing, 10 to 15 day close, recourse required, primarily subordinate or mezz role, strong option for existing CU members seeking rate discounts

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 is a 1031 exchange investor or mid-market sponsor with $10 million to $50 million in real estate holdings, usually 5 to 10 years of net lease acquisition experience, and a track record of 3 to 8 closed deals in the single-tenant space. Motivations split between portfolio diversification (moving capital out of appreciated office or industrial) and pure cashflow harvesting (seeking 5.5 to 6.5 percent stabilized yields with minimal operational burden). These buyers prize certainty, long-term rent growth escalators, and sponsor credit strength less than lenders do, because the tenant credit and lease terms are the primary underwriting anchors.

From the CLS CRE Pipeline

A Real $6M Example

CLS CRE closed a $5.8 million acquisition loan on a Class B fitness facility in the Houston metro area in Q2 2025 for a repeat 1031 buyer with strong deposit relationships. The property was leased to a regional four-state operator on a 12 year net lease with 2 percent annual escalators and an in-place 6.1 percent cap rate. A national bank with a dedicated STNL program funded at 72 percent LTV with a CMT-based rate of 6.68 percent, 25 basis points lower than the borrower's initial quote from a competing lender, and delivered non-recourse structure with standard carve-outs for bankruptcy and environmental. The sponsor closed in 18 days and locked in a 15 year amortization with a 5 year fixed rate period and floating thereafter, providing flexibility for future sale or refi within the 1031 timeline.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$6M Fitness NNN Acquisition FAQ

Tenant credit rating and remaining lease term drive 80 percent of pricing and structure. Lenders weight a BBB or better credit profile and 12 plus years remaining as the baseline for best execution rates. NOI and lease escalation clauses also matter, but secondary to tenant creditworthiness and lease duration.
Yes, but only at 60 to 65 percent LTV or lower, and primarily through life companies or conduit lenders with 30 to 60 day timelines. National banks typically require limited recourse at this LTV range, with carve-outs for bankruptcy, fraud, and environmental default. Expect to pay 10 to 20 basis points more for true non-recourse.
Most 1031 buyers need 45 to 60 days from closing to reinvest proceeds, so lenders with 15 to 25 day close windows (national banks) are preferred. If you are replacing a previous loan balance, ensure your broker coordinates the payoff schedule with the 45 day exchange clock. Life companies can accommodate 60 day timelines but cost slightly more in rate or require larger equity injection.
In-place cap rates typically range from 5.5 to 6.75 percent depending on market and tenant credit. Most lenders underwrite to minimum DSCR of 1.25 to 1.35x on the projected NOI, which is easily met on stabilized net lease assets with strong tenants. Sponsors should expect 4.5 to 5.25 percent cash-on-cash returns after debt service at current rate environment.
Bank programs typically price 20 to 50 basis points lower on initial rate but carry floating risk after the fixed period (usually 5 to 7 years), while life companies lock fixed rates for the full term at a higher entry rate. The breakeven depends on your rate assumptions and exit timeline. 1031 buyers often prefer fixed-rate life company terms for certainty, while long-hold sponsors shop both and select based on 10 year forward rate forecasts.


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