Single-Tenant Net Lease (STNL) Financing
BancorpOne arranges single-tenant net lease (STNL) and triple-net (NNN) commercial real estate financing across all 50 states. Backed by corporate credit tenants—including national pharmacies, dollar stores, quick-service restaurants, automotive retailers, and medical clinics—our STNL debt structures deliver aggressive advance rates, competitive fixed rates, and non-recourse execution.
Indicative Underwriting Matrix
All STNL financing quotes depend on corporate tenant creditworthiness, remaining initial non-cancelable lease term, and parent company guaranty strength.
Passive Income Secured by Corporate Balance Sheets
Single-Tenant Net Lease (STNL) properties—frequently called triple-net or NNN properties—represent the gold standard of passive commercial real estate investment. Under an absolute NNN lease, the tenant (typically a national corporate brand) is contractually responsible for all property operating expenses, including property taxes, building insurance, structural roof/envelope maintenance, and utilities. The landlord collects pure net rental cash flow.
Because cash flow is guaranteed by a national corporate balance sheet rather than individual local consumers, institutional lenders underwrite STNL properties with exceptionally aggressive terms. BancorpOne acts as a commercial mortgage broker, placing STNL debt through life insurance companies, CMBS conduit pools, regional banks, and credit unions to secure low fixed interest rates and flexible loan maturities.
Critical Underwriting Criteria in Net Lease Finance
Lenders evaluate STNL transactions across three core variables:
- Tenant Credit Rating: Investment-grade credit tenants (e.g., CVS, Walgreens, Dollar General, McDonald's, FedEx, AutoZone) command the lowest interest rate spreads and highest advance rates due to negligible default risk.
- Remaining Non-Cancelable Lease Term: Lenders require the remaining primary lease term to exceed the loan term (e.g., a 10-year loan requires at least 11 to 12 years of remaining primary lease term without unilateral termination options).
- Corporate vs. Franchisee Guaranty: Lenders distinguish between leases backed directly by the parent corporate entity versus those signed by a regional franchisee operator.
- Dark-Store and Re-Tenanting Risk: Even for strong credit tenants, lenders evaluate whether the building can be re-leased at market rents if the tenant vacates at the end of the lease.
1031 Tax-Deferred Exchange Execution
STNL properties are the primary acquisition target for investors executing 1031 tax-deferred exchanges:
Meeting Rigid Statutory Deadlines
1031 investors must satisfy strict 45-day identification and 180-day closing deadlines. BancorpOne provides expedited underwriting to ensure financing closes reliably before exchange deadlines lapse.
Matching Exchange Debt Requirements
To defer 100% of capital gains taxes, the replacement property must carry debt equal to or greater than the debt on the relinquished property; our deal desk sizes leverage to match the exchange target precisely.
STNL Financing Submission Checklist
To structure a single-tenant net lease financing quote, sponsors submit:
- Complete fully executed commercial lease agreement, including all amendments, commencement letters, and corporate guarantees
- Purchase and Sale Agreement (for 1031 or arm's-length acquisition) or existing loan payoff statement
- Tenant historical store-sales figures (if reporting is mandated under the lease agreement)
- Sponsor Personal Financial Statement (PFS) and Schedule of Real Estate Owned (SREO)
Frequently Answered Financing Questions
Verified answers to common borrower and broker inquiries regarding loan sizing, guidelines, and execution.
How much remaining lease term is required to get a 10-year commercial loan on a NNN property?
Lenders typically require at least 11 to 12 years of remaining non-cancelable primary lease term to underwrite a 10-year fixed-rate commercial mortgage on an STNL property.
This ensures that contractual rental cash flow covers 100% of the loan term plus provides a 1-to-2 year safety buffer for the lender prior to lease expiration.
Check Lease Term Eligibility →Can BancorpOne arrange financing for a 1031 exchange into an STNL property?
Yes. BancorpOne regularly coordinates acquisition financing for 1031 tax-deferred exchanges into single-tenant net lease properties, aligning loan approval with strict statutory closing windows.
We size debt to satisfy full tax-deferral replacement debt requirements and ensure lender commitments are issued within the 45-day identification period.
Discuss 1031 Deadlines →How does BancorpOne arrange single-tenant net lease commercial debt?
BancorpOne operates as a commercial mortgage broker, placing STNL debt through life companies, credit unions, and CMBS conduit lenders nationwide.
We analyze lease terms, verify corporate credit parentage, and negotiate non-recourse covenants with minimal ongoing lender reserve requirements.
Submit STNL Deal →