8.25% Cap Rate NN Leased Residential Investment

True 7.5% Cap Rate | Long-Term Lease Stability

• rue 8.25% Cap Rate | Long-Term Lease Stability This well-positioned single-family residence offers investors a rare opportunity to acquire a stabilized, income-producing property leased to an established assisted care operator under a modified NN (Double Net) lease structure. The tenant recently executed a new five-year lease, providing immediate income certainty, contractual rent growth, and long-term lease stability. Valuation & Underwriting Consideration This asset should be evaluated based on its income performance, lease structure, and investment characteristics. As a single-family residence leased to an assisted care operator, traditional owner-occupied comparable home sales may not fully reflect the investment value of the property. This opportunity is well suited for investors seeking stable yield, limited management responsibilities, predictable cash flow, and long-term lease security supported by a needs-based tenant.
• Year 2: $5,700 per month Year 3: $5,800 per month Year 4: $5,900 per month Year 5: $6,000 per month Under the modified NN lease structure, the tenant is responsible for utilities, maintenance, landscaping, and repairs. The landlord is responsible for property taxes, insurance, and HOA fees. At the newly reduced asking price of $750,000, the property delivers a true Year 1 cap rate of 8.25%, supported by a five-year lease, contractual rent increases, and a mission-critical residential use.
• Investment Highlights: Newly reduced price of $750,000 True 8.25% Year 1 cap rate Single-family home leased to an assisted care operator Modified NN lease structure New five-year lease in place Two five-year renewal options Annual rent escalations built into the lease Tenant pays utilities, maintenance, landscaping, and repairs Landlord pays property taxes, insurance, and HOA fees Needs-based tenant with long-term demand Predictable income growth Reduced management intensity Passive ownership profile This offering is ideal for investors seeking reliable cash flow, limited day-to-day management, and long-term lease security backed by a needs-based tenant
• Net Operating Income and Cap Rate Sales Price: $750,000 Year 1 NOI: $61,875 Year 1 Cap Rate: 8.25% Year 1 Cap Rate Calculation $61,875 NOI ÷ $750,000 purchase price = 8.25% cap rate Annual Rent Schedule Lease Year Monthly Rent Annual Rent Year 1 $5,600 $67,200 Year 2 $5,700 $68,400 Year 3 $5,800 $69,600 Year 4 $5,900 $70,800 Year 5 $6,000 $72,000 Based on the Year 1 NOI and contractual rent increases, with operating expenses assumed to remain stable, projected NOI and returns are as follows: Year Annual Rent Projected NOI Cap Rate on $750,000 Year 1 $67,200 $61,875 8.25% Year 2 $68,400 $63,075 8.41% Year 3 $69,600 $64,275 8.57% Year 4 $70,800 $65,475 8.73% Year 5 $72,000 $66,675 8.89% NOI growth is driven by scheduled annual rent increases while maintaining a predictable expense profile. Based on the current projections, the investor’s return increases from 8.25% in Year 1 to approximately 8.89% in Year 5.

Location

• Goodyear, Arizona is one of the West Valley’s fastest-growing and most investor-friendly communities, known for its strong employment base, modern infrastructure, and exceptional lifestyle amenities. Strategically located along I-10 and Loop 303, Goodyear offers convenient access to greater Phoenix while maintaining a high quality of life that continues to attract residents and businesses alike. The city is anchored by major employers including Lockheed Martin, Amazon fulfillment operations, UPS, Abrazo West Campus, and large regional distribution and manufacturing facilities that support long-term job growth. This diverse employment base has fueled consistent population growth and strong housing demand.
• Goodyear also stands out for recreation and outdoor living. Residents enjoy access to Estrella Mountain Regional Park, offering miles of hiking, biking, and horseback riding trails, scenic desert landscapes, and lakeside activities. Sports enthusiasts are drawn to Goodyear Ballpark, the spring training home of Major League Baseball teams and a hub for year-round community events. Golf courses, parks, retail centers, and dining options further enhance the area’s appeal. With continued economic expansion, recreational amenities, and a business-friendly environment, Goodyear remains a compelling location for residents, employers, and real estate investors seeking long-term growth in the Phoenix metropolitan area.