$7.5M NNN Acquisition Denver | Commercial Lending Solutions 
Loan Size Example

$7.5 Million NNN Acquisition in Denver

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $7.5M single-tenant net lease acquisition in Denver commands strong lender interest because the Mile High submarket offers stable tenancy, consistent cap rates in the 5.5 to 6.5 percent range, and creditworthy operator demand. Denver's tech-driven economy and population growth have made STNL properties attractive to both stabilized buyers and 1031 exchange investors seeking predictable, long-term income. At this loan size, borrowers typically target 65 to 75 percent LTV with investment-grade or solid mid-market tenant credits, positioning deals for sub-7 percent execution. The Denver STNL market benefits from institutional liquidity and regional lender appetite, making execution timelines competitive and flexible for well-underwritten assets.

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Capital Stack

What a $7.5M NNN Acquisition Capital Stack Looks Like

Capital stack decisions for a $7.5M Denver STNL acquisition hinge on tenant credit, remaining lease term, and sponsor experience. National banks with established STNL programs dominate this size and rate environment, but life insurance companies and select credit unions remain viable alternatives when lease length exceeds 10 years or tenant credit justifies non-recourse leverage.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL program 6.50 to 6.75 percent fixed, CMT-based or SOFR-adjusted $5.25M to $5.625M at 70 percent LTV Primary source for this deal size; 10-year fixed amortization; recourse or limited recourse; 45 to 60 day closing timeline; strong appetite for investment-grade tenants and leases with 8+ years remaining
Life insurance company 6.60 to 6.90 percent fixed, no rate adjustment $5.25M to $5.625M at 70 percent LTV Preferred for longer lease terms (12+ years); non-recourse available at 60 to 65 percent LTV; 60 to 75 day closing; larger underwriting file required but lower pricing if lease term supports it
Regional bank credit union 6.65 to 7.10 percent fixed, relationship-based $3.75M to $4.5M at 50 to 60 percent LTV Viable for established sponsors with prior Denver transactions; full recourse; faster approval for sponsor with deposit relationship; works well as junior piece in split deal or for higher-leverage scenarios
Equity sponsor capital Target 15 to 20 percent equity return $1.875M to $2.25M at 25 to 30 percent equity 1031 exchange buyers and core-plus investors common here; equity often sourced from retained capital or co-investment partners; structures allow mezzanine debt in selected cases to reduce sponsor equity requirement

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 $7.5M NNN Acquisition Deal

A typical $7.5M Denver STNL buyer ranges from an experienced individual investor with $3M to $5M net worth and 3 to 5 prior single-tenant acquisitions, to a small to mid-market private real estate firm managing $50M to $300M in assets. 1031 exchange investors represent a significant portion of this volume, often motivated by portfolio consolidation or desire to simplify management in a single, strong submarket. Sponsors in this deal size seek institutional-grade tenant credit, stable DSCR (1.25 to 1.50x), and long remaining lease terms to support conservative leverage and achieve exit optionality through sale or refi within 5 to 7 years.

From the CLS CRE Pipeline

A Real $7.5M Example

CLS CRE closed a $7.4M acquisition loan for a regional quick-service restaurant tenant on a pad site in the southeast Denver submarket. The sponsor, a 1031 exchange investor exiting a multi-property portfolio, targeted 70 percent LTV and a fixed rate in the 6.55 to 6.75 percent range. A national bank with a dedicated STNL platform approved a 10-year fixed loan at 6.62 percent with 25-year amortization, full recourse, and 55-day close. The tenant carried an A/BBB credit rating and had 11 years remaining on an absolute net lease, delivering 5.8 percent cap rate to the sponsor and clean 1.35x DSCR. Deal closed on time with minimal conditions and became a hold-to-maturity vehicle for the investor.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$7.5M NNN Acquisition Denver FAQ

Most national banks prefer investment-grade (BBB minus or higher) or solid mid-market credits (cash flow positive, multi-location operators, regional or national presence). Single-location, local operators face higher pricing or lower LTV. Recession-resistant sectors like healthcare, quick-service restaurants, and convenience retail perform strongest in underwriting. Credit score alone does not override business stability assessment.
Non-recourse is possible with a life insurance company lender at 60 to 65 percent LTV, typically when lease term exceeds 12 to 15 years and tenant credit is investment-grade. A national bank will rarely offer non-recourse above 50 to 55 percent LTV on STNL assets this size. Borrowers must weigh the equity premium against pricing benefit; full recourse to a national bank often delivers lower rate than non-recourse to a life company.
Life companies emphasize lease quality, tenant creditworthiness, and property valuation stability. They require three to five years of tenant financials, rent roll history, phase I environmental, appraisal, and often request sponsor financial statements. Timeline is typically 60 to 75 days versus 45 to 60 for national banks. The additional review supports lower relative pricing on long-lease, strong-tenant deals.
Lower cap rates (5.5 to 6.0 percent) signal strong market conditions and tenant durability, supporting tighter LTV at competitive rates. Higher cap rates (6.5 to 7.0 percent) may reflect tenant credit concerns or lease term constraints; lenders may reduce LTV or widen rates by 25 to 50 basis points. Appraisal-based value and actual cash flow (NOI) must align; inflated values weaken underwriting credibility.
A 10-year term is standard for STNL and aligns with typical lease renewal cycles; it delivers slightly tighter pricing (6 to 15 basis points) from national banks. A 15-year term reduces annual P&I, improving DSCR, but is less common and may require a life company or credit union. Choose 10-year for simplicity and competitive execution; select 15-year only if lease extends well beyond loan payoff and sponsor prioritizes cash flow stability.


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