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Jeff Dial

jd@jeffdial.com +1(480) 900-9180

$ 695,000

Est. payment | -/mo

6 Beds

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$ 695,000

Est. payment | -/mo

Save Virtual Tour

6 Beds

Key Details

Property Type Multi-Family

Listing Status Active

Purchase Type For Sale

Subdivision Cave Creek Unit 3

MLS Listing ID 7060894

Bedrooms 6

Year Built 1986

Annual Tax Amount $2,589

Tax Year 2025

Lot Dimensions irr

Source Arizona Regional Multiple Listing Service (ARMLS)

Property Description

* **9.74% Day-One Cap Rate -- Exceptional Yield in a Single-Family Asset**
* **Absolute NNN Structure -- Tenant Reimburses Property Taxes and Insurance**
* **Contractual Rental Growth Built Into the Initial 5-Year Lease Term**
* **Forward Yield Increases to Approximately 10.43% by Year 5**
* **Newly Executed Lease Provides Contractual Income Through 2030**
* **Personal Guarantee Supports the Tenant's Lease Obligations**
* **More Than $40,000 in Recent Renovations and Capital Improvements**
* **Predictable Income Stream Secured by Phoenix Real Estate**
* **Built-In Upside Without Renovation, Repositioning, or Intensive Management**
* **Rare Combination of Double-Digit Forward Yield 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.

Location

State AZ

County Maricopa

Community Cave Creek Unit 3

Area Maricopa

Zoning R-3

Direction From Cave Creek Road and Sharon Drive, travel west on Sharon Drive. Turn left onto North 20th Street, then turn right onto East Crocus Drive. Continue to 1927 E Crocus Drive, which will be on your left.

Interior

Heating Individual, Heat Pump

Cooling Ceiling Fan(s), Heat Pump, Individual

Flooring Ceramic Tile

Appliance Free-Standing Range, Disposal, Dishwasher, Refrigerator, Microwave, W/D Hookup

Exterior

Exterior Feature Sidewalk(s)

Parking Features Attached Garage, Paved, Free, Garage Door Opener, >1 Space Per Unit, On Street

Community Features No Pool

Roof Type Tile

Garage Yes

Private Pool No

Building

Sewer Public Sewer

Water Individual Meter, City Franchise

Structure Type Sidewalk(s)

New Construction No

Schools

School District Paradise Valley Unified District

Others

Senior Community No

Tax ID 214-50-196

Acceptable Financing Other (See Remarks), No Carry, Conventional

Disclosures Seller Prop Disc Stm, APOD/Backup Avaible, Sch of Personal Prop

Listing Terms Other (See Remarks), No Carry, Conventional

Virtual Tour https://tours.arizonarealtours.com/2350793?idx=1

Listed by Gerchick Real Estate • Linda S Gerchick

Nearby School & Business

+1(480) 900-9180

jd@jeffdial.com

17550 N Perimeter Dr # 100, Scottsdale, AZ 85255, United States

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1927 E CROCUS Drive Phoenix, AZ 85022