* **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.
