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

$8 Million Pharmacy NNN Acquisition in Nashville

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

An $8 million pharmacy NNN acquisition in Nashville represents a core-plus opportunity for experienced net lease investors seeking stable, long-term cash flow in Tennessee's growing healthcare corridor. Typical lenders for this deal size include national banks with established single-tenant net lease programs, regional credit unions, life insurance companies, and CMBS conduit lenders, each competing aggressively for investment-grade pharmacy credits. Leverage typically ranges from 60 to 75 percent LTV depending on tenant credit rating and remaining lease term, with rates in the 6.25 percent range reflecting current CMT-based pricing and modest spread compression for institutional-quality assets. Most closings in Nashville's pharmacy NNN market occur in 45 to 60 days, supported by straightforward underwriting and borrower-paid NNN verification.

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Capital Stack

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

The capital stack for an $8 million Nashville pharmacy acquisition almost always features a single senior lender, given the simplicity and predictability of pharmacy triple-net leases. Deal selection hinges on tenant credit (investment-grade preferred), lease remaining term (10 to 20 years typical), and location stability, with lender choice driven by borrower recourse tolerance, rate environment, and desired loan term length.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL program 6.00 to 6.50 percent, CMT-based plus 165 to 195 bps spread $4.8 to $6 million (60 to 75 percent LTV) 10 to 15 year amortization, full recourse, 7 to 10 day rate lock, preferred for investment-grade tenants with 12+ years lease remaining
Life insurance company 6.10 to 6.40 percent, fixed rate or CMT-plus $5.0 to $6.4 million (62.5 to 80 percent LTV) 20 to 30 year amortization available, typically full recourse, slower underwriting timeline (60 to 90 days), favors longer lease terms
Regional credit union 6.15 to 6.35 percent, CMT-plus or fixed $3.2 to $5.6 million (40 to 70 percent LTV) Relationship-driven pricing, 10 to 15 year term, full recourse standard, competitive for borrowers with existing deposits or business
CMBS conduit lender 6.35 to 6.75 percent, spread-based structure $4.8 to $6.4 million (60 to 80 percent LTV) Non-recourse available at lower LTV, 10 year term, 2 to 3 month underwriting, institutional-quality tenant required, typical for portfolio acquisitions

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 an $8 million pharmacy NNN acquisition in Nashville include 1031 exchange investors with $15 million to $50 million in net worth, experienced net lease portfolio holders (10 to 50 single-tenant assets), and institutional buyers seeking yield in a low-volatility Tennessee submarket. Motivation often centers on tax-deferred exchange execution, portfolio diversification into healthcare real estate, or capture of 6 to 7 percent cap rate yield with minimal management burden. Many sponsors have closed 2 to 5 prior NNN acquisitions and seek lenders offering streamlined underwriting, transparent pricing, and flexibility on lease expirations or tenant substitution clauses.

From the CLS CRE Pipeline

A Real $8M Example

CLS closed an $7.2 million acquisition loan for a single-tenant pharmacy located in a Nashville suburban trade area in Q3 2024, structured with a national bank STNL program at 6.28 percent, 72 percent LTV, and 15 year amortization. The borrower, an experienced net lease investor with three prior acquisitions, sought full recourse financing to maximize leverage on a tenant carrying an investment-grade credit rating and 14 years of lease remaining. The lender approved a CMT-plus structure with a 180 bps spread, closed in 52 days, and the borrower achieved a 6.4 percent all-in yield after debt service, reinforcing the appeal of pharmacy assets in Nashville's healthcare expansion zone.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$8M Pharmacy NNN Acquisition Nashville FAQ

Investment-grade or strong sub-investment-grade tenants (BB and above) are preferred by nearly all lenders for Nashville pharmacy deals at this size. Some regional banks and credit unions will accommodate tenants with a single A or BBB rating if lease remaining term exceeds 10 years and the location exhibits stable demographics. Below-investment-grade credits typically face tighter LTV caps (55 to 65 percent) and higher rates (50 to 100 bps premium).
Non-recourse is available from CMBS conduit lenders and some life insurance companies, but typically only at 60 to 65 percent LTV, which would support roughly $4.8 to $5.2 million in loan proceeds on an $8 million purchase. Full recourse pricing from national banks and credit unions allows 70 to 75 percent LTV, making it the more capital-efficient structure for most Nashville borrowers.
National banks with established STNL programs close in 45 to 60 days from application to funding, while life insurance companies typically require 70 to 90 days and CMBS lenders 60 to 75 days. Faster closings depend on clean title, straightforward tenant verification, and no unusual lease provisions or property condition issues.
National banks and credit unions typically require 10 to 12 years of lease remaining at the time of closing, while life insurance companies often accept 8 to 10 years. Leases with fewer than 8 years remaining face rate premiums or LTV reductions, as lender appetite for near-term lease rollover risk in the Nashville market remains cautious.
Current pricing for investment-grade tenants with 12+ year lease terms ranges from 6.10 to 6.50 percent depending on lender type, loan term, and amortization structure. CMT-based programs from national banks typically price 165 to 195 bps over the 10 year CMT, while fixed-rate offers from life companies range 6.15 to 6.40 percent, offering borrowers rate certainty over longer amortization periods.


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