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

$7.5 Million NNN Acquisition in Nashville

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $7.5M single-tenant net lease acquisition in Nashville represents a core holding for 1031 exchange buyers and conservative portfolio managers seeking stable, long-term income in Tennessee's growing market. Typical leverage sits at 65 to 75 percent LTV depending on tenant credit quality and remaining lease term, with rates in the 6.50 to 6.75 percent range reflecting current CMT-indexed pricing. Nashville's combination of population growth, corporate relocation, and stable retail fundamentals has made the submarket attractive to both national banks with STNL platforms and life insurance companies looking to deploy capital into investment-grade tenancy. Most lenders in this space prioritize lease strength and sponsor experience over property-level value-add.

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Capital Stack

What a $7.5M NNN Acquisition Capital Stack Looks Like

Capital stacks at this size are typically simple: one primary lender funding 65 to 75 percent, with the sponsor covering the equity gap. National banks with dedicated single-tenant programs dominate due to speed, recourse flexibility, and CMT-based rate offerings, though life insurance companies and CMBS conduits remain competitive for longer holds and non-recourse structures. Lender selection usually hinges on tenant creditworthiness, lease maturity runway, and whether the sponsor wants recourse or non-recourse terms.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL platform 6.50 to 6.75 percent, CMT-based with 200 to 250 bp spread $5.0M to $5.6M (66 to 75 percent LTV) Typically recourse to sponsor; 25 to 30 year amortization; floating or fixed options; 15 to 20 day close timeline
Life insurance company 6.60 to 6.85 percent, fixed rate $4.5M to $5.25M (60 to 70 percent LTV) Non-recourse available at lower LTV; longer underwriting window; appetite for A credit tenants; 25 to 30 year terms
CMBS conduit lender 6.75 to 7.10 percent, fixed rate $4.5M to $5.25M (60 to 70 percent LTV) Non-recourse structure standard; 30 to 45 day close; requires seasoned sponsorship and investment-grade credit; IO periods possible
Sponsor equity Target 25 to 35 percent return IRR on hold $1.9M to $2.6M (25 to 35 percent of deal) 1031 exchange proceeds common source; leverage lower for non-recourse structures; equity committed upfront

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

The typical $7.5M NNN buyer in Nashville is a seasoned 1031 exchange investor or small portfolio company with 10+ years of CRE experience, $10M to $50M+ net worth, and a track record of 5 to 20 prior acquisitions. These sponsors value cash flow stability and tax efficiency over appreciation, and they often hold for 10+ years or until lease expiration. Many are downsizing from larger portfolios or redeploying capital from recent dispositions and appreciate lenders who can close efficiently with minimal operational due diligence.

From the CLS CRE Pipeline

A Real $7.5M Example

CLS CRE arranged $5.2M financing for a regional drugstore chain tenant occupying a net lease property in the Williamson County area, representing 70 percent LTV at a 6.58 percent rate on a 25 year amortization through a national bank STNL program. The sponsor was a 1031 exchange buyer from a California office disposition seeking income-producing single-tenant assets in growing MSAs. The five year remaining lease term and A minus tenant credit limited non-recourse alternatives, so the borrower accepted full recourse pricing in exchange for a 18 day close and floating rate optionality. The loan performed without event, the tenant renewed at fair market rate, and the borrower refinanced into a life company non-recourse product four years into the hold.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$7.5M NNN Acquisition Nashville FAQ

Most lenders will advance 65 to 75 percent LTV, or roughly $4.9M to $5.6M, depending on the tenant's credit rating and remaining lease term. If the tenant is A rated or higher and the lease has 8+ years remaining, you can expect to push toward 75 percent. Below A credit or shorter lease terms will pull the LTV back to 65 to 70 percent.
Yes, but typically only at 60 to 70 percent LTV through life insurance companies or CMBS conduits, which means your equity check grows. Recourse pricing from national banks remains more aggressive at 75 percent LTV, so the trade-off is between lower leverage and non-recourse credit, or higher leverage and recourse obligation. Most sponsors in this size category accept recourse to maximize debt capacity.
Expect 10 to 50 basis points difference depending on structure and tenant credit. National banks with STNL programs typically run 6.50 to 6.75 percent on a CMT-indexed floating base, while life companies hold closer to 6.60 to 6.85 percent fixed. The national bank advantage is speed and leverage; the life company advantage is longer terms and non-recourse availability.
National bank STNL programs close in 15 to 20 days with minimal third party reports. Life insurance companies typically take 30 to 45 days due to rigorous underwriting. CMBS conduits require 30 to 45 days and are more stringent on sponsor history and lease quality. Anticipate 20 to 30 days for standard conditions clearance across all platforms.
Leases with 10+ years remaining command 6.50 to 6.75 percent pricing at 70 to 75 percent LTV. Leases with 5 to 10 years remaining typically price 25 to 50 basis points higher and sustain 65 to 70 percent LTV. Below five years remaining, leverage drops to 60 to 65 percent and rates widen further unless the tenant has exceptional credit or a renewal option with favorable economics.


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