Single-Tenant Net Lease (STNL) & Triple-Net (NNN) Real Estate Financing
BancorpOne structures senior commercial debt, CMBS conduit loans, and life insurance company mortgages for Single-Tenant Net Lease (STNL) retail properties. Backed by corporate credit tenants on absolute triple-net (NNN) leases (e.g., Dollar General, CVS, Walgreens, McDonald's, Chase Bank), STNL real estate commands high leverage, non-recourse execution, and long-term fixed interest rates.
Indicative Underwriting Matrix
All loan pricing, debt yields, and advance rates are underwritten by commercial lenders based on tenant corporate credit ratings, store-level sales performance, remaining lease duration, and real estate residual value.
Underwriting Credit-Backed Single-Tenant Net Lease Properties
Single-Tenant Net Lease (STNL) commercial real estate is widely regarded as one of the safest passive property investments. Because the corporate tenant is contractually obligated to pay real estate taxes, building hazard insurance, utilities, and all structural maintenance, the property owner enjoys highly predictable, bond-like monthly net rental income.
Commercial lenders evaluate STNL properties by analyzing two distinct components: the credit rating of the corporate lease guarantor and the intrinsic real estate value (residual value of the underlying land and building if the tenant were to vacate). BancorpOne acts as a commercial mortgage broker, matching 1031 exchange investors and institutional owners with life companies and CMBS conduits offering customized non-recourse debt stacks.
- Corporate Parent Guarantees: Lenders verify whether the lease is guaranteed by the investment-grade corporate parent entity (e.g., Dollar General Corporation) or an unrated regional franchisee.
- Store-Level Unit Sales (Four-Wall Rent Coverage): For retail and restaurant tenants, underwriters review unit-level sales to verify that the store generates adequate four-wall cash flow to cover its rent obligations.
- Lease Expiry vs Loan Maturity: The initial primary term of the lease must safely exceed the commercial mortgage term, typically requiring at least a 2 to 3-year buffer to avoid refinancing balloon risk.
Frequently Answered Financing Questions
Verified answers to common borrower and broker inquiries regarding loan sizing, guidelines, and execution.
How do lenders size a mortgage for a single-tenant NNN property?
Lenders size STNL mortgages primarily on debt yield (typically 8.0%–9.0%) and the remaining primary lease term, matching loan amortization to the guaranteed lease duration.
Because cash flow depends on a single tenant, lenders ensure that the loan pays down significantly before the tenant faces their first lease renewal option.
Size STNL Debt Facility →Can BancorpOne arrange debt for time-sensitive 1031 exchange STNL acquisitions?
Yes. BancorpOne regularly coordinates with 1031 exchange accommodators, delivering expedited term sheets and fast closings within the strict 180-day IRS replacement window.
We place 1031 debt with trusted lenders to ensure that exchange investors successfully replace existing mortgage liabilities and avoid taxable boot.
Explore 1031 Exchange Debt →