1927 E Crocus Dr - Absolute NNN Leased for 5 years w/rent bumps 2,019 SF Specialty Building Offered at $695,000 at a 9.74% Cap Rate in Phoenix, AZ 85022

1927 E Crocus Dr presents an investment opportunity in Phoenix's Paradise Valley Village area. The asset is being marketed as a fully leased investment with a recently executed lease extending through 2030 and an absolute NNN structure in which the tenant reimburses property taxes and insurance. Reported contractual rent growth during the initial lease term provides built-in income escalation without requiring a change in operations. The property has undergone approximately $40,000 in recent renovations and capital improvements and is currently operated by an established tenant with a documented operating history.
The property benefits from a North Phoenix location near major commuter routes including SR-51, Loop 101, and I-17, providing regional access across the Phoenix metropolitan area. Nearby residential neighborhoods, employment centers, retail services, healthcare facilities, and outdoor recreation amenities support long-term occupancy demand within the surrounding market. Phoenix remains one of the largest metropolitan areas in the Southwest, offering a diverse economic base driven by healthcare, technology, logistics, financial services, and advanced manufacturing sectors.
For investors seeking predictable income, the offering combines an existing operational use, contractual lease structure, and recent property improvements. The asset's established occupancy, lease term extending through 2030, and reported rental growth provisions create a defined income profile while positioning ownership to benefit from continued participation in the Phoenix market.
1927 E Crocus Drive
Phoenix, Arizona 85022
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 Net 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.
Gerchick Real Estate makes no warranties or representations regarding the accuracy or completeness of the information provided. Buyer is advised to conduct independent due diligence and consult with appropriate legal, financial, accounting, and tax professionals before making an investment decision.