1927 E CROCUS Drive Phoenix, AZ 85022

9.74% Day-One Cap Rate--Exceptional Yield for a Single-Family Investment
Absolute NNN Lease Structure--Tenant Reimburses Property Taxes and Insurance
Contractual Annual Rent Increases Throughout the Initial Five-Year Lease Term
Projected Cap Rate Increases to Approximately 10.43% by Year Five
Newly Executed Lease Provides Contractual Rental Income Through December 2030
Tenant's Lease Obligations Are Supported by a Personal Guarantee
More Than $40,000 in Recent Renovations and Capital Improvements
Predictable Rental Income Backed by Phoenix Residential Real Estate
Built-In Income Growth Without Renovation, Repositioning, or Intensive Management
Rare Combination of a Double-Digit Forward Cap Rate and Residential Real Estate ABSOLUTE NNN SINGLE-TENANT INVESTMENT
5-Year Lease | Built-In Rental Growth | 9.74% Year 1 Cap Rate

POSITIONING
Bond-Like Income Secured by Real Estate
Absolute Triple NNN lease structure

Newly executed 5-year lease commencing January 1, 2026

Personal guarantee

Two additional 5-year renewal options

Monthly base rent increases by $100 each year

Tenant's first right of refusal

ASKING PRICE: $695,000
EXECUTIVE SUMMARY
Gerchick Real Estate is pleased to present a fully stabilized, single-tenant Absolute NNN investment secured by a newly executed 5-year lease.

In addition to base rent, the tenant reimburses the landlord for property taxes and insurance, creating a predictable and largely passive income stream.

This investment offers:

Immediate cash flow

Contractual annual rent growth

Minimal landlord responsibility

Personal guarantee

Long-term renewal potential

Strong initial and forward yields

The property's value is driven by its contractual income stream. This is not an owner-occupant comparable-sale opportunity--it is a yield-focused real estate acquisition.

FINANCIAL OVERVIEW
Year 1 Income
Base Rent: $5,200 per month
NNN Reimbursements: $440.25 per month
Total Monthly Income: $5,640.25

Total Annual Income: $67,683

Year 1 Cap Rate
Purchase Price: $695,000

$67,683 ÷ $695,000 = 9.74%

YEAR 1 CAP RATE: 9.74%
FORWARD YIELD GROWTH
Lease Year Annual Income Yield on Original Purchase Price
Year 1 $67,683 9.74%
Year 2 $68,883 9.91%
Year 3 $70,083 10.08%
Year 4 $71,283 10.26%
Year 5 $72,483 10.43%
By Year 5, the annual yield increases to approximately 10.43% based on the original $695,000 purchase price.

FIVE-YEAR CASH-FLOW PROJECTION
Assuming an all-cash purchase at $695,000:

Lease Year Projected Gross Income
Year 1 $67,683
Year 2 $68,883
Year 3 $70,083
Year 4 $71,283
Year 5 $72,483
Total $350,415
TOTAL PROJECTED FIVE-YEAR GROSS INCOME: $350,415
The projected five-year gross income equals approximately 50.42% of the purchase price, providing investors with the potential to recover more than half of the original acquisition cost through gross income during the initial lease term alone.

LEASE ABSTRACT
Lease commencement: January 1, 2026

Initial lease term: 5 years

Renewal options: Two additional 5-year terms

Base-rent increases: $100 per month annually

Guarantee: Personal guarantee

First right of refusal: Provided to tenant

Property taxes: Reimbursed by tenant

Property insurance: Reimbursed by tenant

Lease structure: Absolute NNN

INVESTMENT THESIS
Why This Asset Performs
Attractive 9.74% initial cap rate

Contractual annual rent increases

Forward yield exceeding 10% beginning in Year 3

Personal guarantee helps reduce investment risk

Minimal ongoing management burden

Annual increases provide a hedge against inflation

Strong Phoenix location

Potential for future cap-rate compression

Contractual income secured by underlying real estate

Two additional 5-year renewal options

This structure may appeal to private investors, 1031 exchange buyers, family offices, and yield-focused purchasers seeking stable real estate income without the management demands of a traditional residential rental.

BUYER REQUIREMENTS
The Seller recognizes that traditional residential appraisal methodology may not fully reflect the value of the property's contractual income stream.

All offers must:

Be submitted as an all-cash purchase; or

Waive the appraisal contingency; and

Include acceptable proof of funds

This is an income-driven acquisition.
DISCLAIMER
All information contained herein has been obtained from sources deemed reliable but is not guaranteed. Buyer shall independently verify all information, including but not limited to lease terms, rental income, reimbursements, expenses, property condition, zoning, square footage, and all other material facts.