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.
Pending
$695,000
1927 E CROCUS Drive, Phoenix, AZ 85022
6beds
6baths
10,800sqft
Multi Family
Built in 1986
-- sqft lot
$-- Zestimate®
$64/sqft
$-- HOA
What's special
- 106 days
- 949
- 46
Zillow last checked:
Listing updated:
Listed by:
Linda S Gerchick 602-688-9279,
Gerchick Real Estate
Source: ARMLS,MLS#: 7060894

Facts & features
Interior
Bedrooms & bathrooms
- Bedrooms: 6
- Bathrooms: 6
Heating
- Individual, Heat Pump
Cooling
- Ceiling Fan(s), Heat Pump, Individual
Appliances
- Included: Free-Standing Range, Disposal, Dishwasher, Refrigerator, Microwave
- Laundry: W/D Hookup
Features
- Flooring: Laminate, Ceramic Tile, Vinyl
Interior area
- Total structure area: 10,800
- Total interior livable area: 10,800 sqft
Video & virtual tour
Property
Parking
- Total spaces: 3
- Parking features: Attached, Paved, Free, Garage Door Opener, >1 Space Per Unit, On Street
- Has attached garage: Yes
- Uncovered spaces: 3
Features
- Exterior features: Sidewalk(s)
Details
- Parcel number: 21450196
- Zoning: R-3
Construction
Type & style
- Home type: MultiFamily
- Property subtype: Multi Family
Materials
- Wood Frame, Painted, Stucco, Block
- Roof: Tile
Condition
- Year built: 1986
Utilities & green energy
- Electric: APS, Individual Meter
- Sewer: Public Sewer
- Water: Individual Meter, City Franchise
Community & HOA
Community
- Features: No Pool
- Security: Security Lights, Fire Sprinkler System
- Subdivision: CAVE CREEK UNIT 3
Location
- Region: Phoenix
Financial & listing details
- Price per square foot: $64/sqft
- Tax assessed value: $463,800
- Annual tax amount: $2,589
- Date on market: 5/14/2026
- Cumulative days on market: 107 days
- Listing terms: Other (See Remarks),No Carry,Conventional
- Ownership: Fee Simple
- Electric utility on property: Yes
- Road surface type: Asphalt
Estimated market value
Not available
Estimated sales range
Not available
Not available
Price history
| Date | Event | Price |
|---|---|---|
| 8/27/2026 | Pending sale | $695,000$64/sqft |
Source: | ||
| 7/31/2026 | Listed for sale | $695,000-18.2%$64/sqft |
Source: | ||
| 6/18/2026 | Listing removed | $850,000$79/sqft |
Source: | ||
| 6/12/2026 | Listed for sale | $850,000$79/sqft |
Source: | ||
| 5/3/2026 | Pending sale | $850,000$79/sqft |
Source: | ||
| 2/21/2026 | Listed for sale | $850,000$79/sqft |
Source: | ||
| 1/20/2026 | Pending sale | $850,000$79/sqft |
Source: | ||
| 1/20/2026 | Listed for sale | $850,000+41.7%$79/sqft |
Source: | ||
| 8/26/2024 | Listing removed | $599,999$56/sqft |
Source: | ||
| 5/17/2024 | Price change | $599,999-4.8%$56/sqft |
Source: | ||
| 4/3/2024 | Listed for sale | $630,000+127.4%$58/sqft |
Source: | ||
| 3/24/2021 | Listing removed | -- |
Source: Owner Report a problem | ||
| 1/24/2017 | Sold | $277,000+6.5%$26/sqft |
Source: Public Record Report a problem | ||
| 9/26/2016 | Listing removed | $260,000$24/sqft |
Source: Owner Report a problem | ||
| 9/24/2016 | Listed for sale | $260,000$24/sqft |
Source: Owner Report a problem | ||
Public tax history
| Year | Property taxes | Tax assessment |
|---|---|---|
| 2025 | $2,544 +2.6% | $46,380 -6% |
| 2024 | $2,479 +2.1% | $49,360 +114.7% |
| 2023 | $2,428 -0.7% | $22,986 -30.3% |
| 2022 | $2,445 +2.9% | $33,000 +13.4% |
| 2021 | $2,376 -0.1% | $29,100 +2.6% |
| 2020 | $2,379 +3.4% | $28,360 +6.7% |
| 2019 | $2,301 | $26,570 -0.9% |
| 2018 | $2,301 +4.3% | $26,800 +12% |
| 2017 | $2,206 +28.6% | $23,930 +4.9% |
| 2016 | $1,715 +3% | $22,820 +16.6% |
| 2015 | $1,665 | $19,570 +18.2% |
| 2014 | -- | $16,550 +22.9% |
| 2013 | -- | $13,470 -14.2% |
| 2012 | -- | $15,700 -2.8% |
| 2011 | -- | $16,160 -21.4% |
| 2010 | -- | $20,550 -23.1% |
| 2009 | -- | $26,720 -11.1% |
| 2008 | -- | $30,050 +15.8% |
| 2007 | -- | $25,950 +45.4% |
| 2006 | -- | $17,850 |
| 2005 | -- | $17,850 +9.2% |
| 2004 | -- | $16,350 |
| 2003 | -- | $16,350 +10.8% |
| 2002 | -- | $14,750 |
Find assessor info on the county website
Monthly payment
Est. payment
Payment breakdown
Explore the cost of this home by adjusting the details. Changes won't be saved.Climate risks
Neighborhood: Paradise Valley
Nearby schools
Schools provided by the listing agent
- District: Paradise Valley Unified District
Source: ARMLS. This data may not be complete. We recommend contacting the local school district to confirm school assignments for this home.

