Financing Net Leased Commercial Real Estate

Financing Net Leased Commercial Real Estate

The majority of net leased commercial real estate is traded between $1 million and $5 million. Investment borrowers, also known as sponsors, will need a down payment of 20-25% of the purchase price and some cases 40% of the purchase price. The higher down payment increases cash flow, especially on properties with lower cap rates and long term leases.

For owner-users, 85% financing is available through the SBA 7(a) program. For experienced developers, 100% financing may be available with a secured long-term, investment grade tenant for their commercial site. Non-recourse and partial recourse guarantees depend on the loan-to-value, credit of the borrower, and credit of the tenant.

In 2022, interest rates range from 5% to 6%. Fixed rates are typically 5 -year, 7-year, or 10-year terms. Amortization ranges from 20 to 30 years. The entire lending process takes approximately 45 days to fund once the property is under contract.

Featured Property

7-Eleven
3798 South Western Avenue
Chicago, IL

  • Price: $7,714,000
  • Cap Rate: 5.00%
  • NOI: $385,700
  • Rentable SQFT: 4,650 SF
  • Year Built: 2023
  • Lot Size: 0.96 +/- Acres
  • Lease Type: Absolute NNN

Credit: Secure Net Lease and Jerry Kachel Builder

Need financing for a net leased property? Apply below or visit our Financing page to start your application.

  1. We conduct a soft credit pull that will not affect your credit score. However, in processing your loan application, the lenders with whom we work will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and happens after your application is in the funding process and matched with a lender who is likely to fund your loan.

Please call 470.765.8473 or email us at email@playersclub.shop for assistance!

Retour au blog