$8M Pharmacy NNN Acquisition Denver | Commercial Lending Solutions 
Loan Size Example

$8 Million Pharmacy NNN Acquisition in Denver

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

An $8 million pharmacy net lease acquisition in Denver represents a stable, institutional-grade investment anchored by a national or regional credit tenant on a long-term triple-net lease. Lenders in this category typically offer 60 to 75 percent LTV depending on tenant strength and remaining lease term, with rates around 6.25 percent reflecting current CMT-based pricing for investment-grade single-tenant deals. Denver's strong demographic fundamentals and consistent pharmacy demand make these deals attractive to both debt funds and traditional banks, particularly for 1031 exchange investors seeking passive income replacement. The $8 million loan size sits comfortably within most lender sweet spots, commanding efficient pricing and broad capital availability.

Get a Quote on Your $8M Deal →
Capital Stack

What a $8M Pharmacy NNN Acquisition Capital Stack Looks Like

National and regional banks with established single-tenant net lease programs dominate the capital stack at this loan size in Denver. Lender selection typically turns on tenant credit rating, lease remaining term, and sponsor experience; investment-grade pharmacies on 10-plus-year leases can access the most competitive terms, while smaller regional operators or shorter lease horizons may require life company or credit union financing. Most deals close non-recourse at lower LTV, making sponsor balance sheet less of a constraint than asset quality.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL platform 6.25 percent fixed, CMT-based pricing $4.8M to $6.0M (65 to 75 percent LTV) Fastest close, full recourse option available, prefers investment-grade tenant and 10-plus-year lease term, 45 to 60 day closing timeline
Regional bank with net lease specialty 6.25 to 6.50 percent fixed $4.0M to $6.0M (60 to 75 percent LTV) Flexible underwriting on tenant credit, willing to underwrite regional operators, non-recourse available at 65 percent LTV and below, 30 to 45 day close
Life insurance company 6.50 to 6.75 percent fixed, longer terms available $3.0M to $6.5M (60 to 70 percent LTV) Strong on sub-investment-grade tenants, 15 to 20-year fixed rate available, non-recourse standard, 60 to 90 day close, excellent for long-term hold investors
Credit union with CRE lending capability 6.25 to 6.75 percent fixed or variable $2.0M to $5.0M (60 to 70 percent LTV) Non-recourse available, relationship-driven pricing, slower underwriting, strong for locally-anchored operators with Denver presence or prior credit history

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 $8M Pharmacy NNN Acquisition Deal

Typical sponsors for $8 million pharmacy acquisitions in Denver range from established 1031 exchange investors with $3 million to $5 million net worth seeking passive long-term hold to smaller regional operators with 5 to 15 prior deal closings looking to acquire a second or third location. Many are former owners transitioning from operations to investment, or experienced CRE investors looking to redeploy capital into triple-net pharmacy income. Common motivations include tax-deferred exchanges, portfolio diversification away from office or retail, and the appeal of tenant-responsible maintenance and capex.

From the CLS CRE Pipeline

A Real $8M Example

We closed an $7.2 million pharmacy acquisition in the Aurora submarket for a regional investor with prior single-tenant experience. The property carried an investment-grade tenant on a 12-year lease with 5-year renewal options, generating 6.1 percent cap rate. A regional bank offered 70 percent LTV at 6.25 percent fixed on a non-recourse basis, closing in 52 days with minimal sponsor recourse beyond a typical bad-boy carve-out. The investor's 1031 exchange timeline was tight, but lender's streamlined underwriting and existing knowledge of the tenant credit allowed fast pre-approval and appraisal ordering, enabling the deal to fund before the exchange deadline.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$8M Pharmacy NNN Acquisition Denver FAQ

Investment-grade tenants (S&P rating BBB-minus or above, or equivalent) attract the tightest spreads and fastest closes from national banks. Regional and independent operators with strong local presence and 3-plus-year operating history can still secure competitive terms from life companies and regional banks, typically at 25 to 50 basis points higher cost. Lenders will scrutinize the operator's rent coverage, prior bankruptcies, and management continuity even more closely for sub-investment-grade names.
Yes, non-recourse is available from most lenders at LTV of 65 percent and below, which typically equates to $4.8 million to $5.2 million on an $8 million purchase price. Life insurance companies offer non-recourse across a wider LTV range (up to 70 percent) and longer amortizations. National banks usually offer non-recourse only when LTV is conservative and tenant credit is investment-grade.
National banks close in 40 to 60 days with full documentation. Regional banks and credit unions average 50 to 75 days depending on loan complexity and local underwriting practices. Life companies typically require 75 to 90 days because of longer portfolio review cycles, though some offer 60-day programs for straightforward investments. 1031 exchange deadlines often compress timelines; alert your lender early if timing is constrained.
Lenders typically look for stabilized cap rates of 5.75 to 7.5 percent depending on tenant credit and lease length. Debt service coverage ratio (DSCR) is less critical for net leases since the tenant funds the debt through lease payments, but lenders still model minimum 1.20x to 1.35x DSCR based on NOI. Investment-grade tenants can achieve lower required cap rates; independent operators should expect lenders to demand higher spreads and cap rates to compensate for credit risk.
Rates will reset based on market conditions at time of refinance. Fixed-rate products lock your payment throughout the original loan term, so your monthly obligation does not change. If you refinance before maturity, you will reprice based on CMT index and current spreads, which may be higher or lower than your original 6.25 percent rate. Life company loans often feature longer fixed terms (15 to 20 years), reducing refinance risk if you intend to hold long-term.


Get a Quote on Your $8M 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.