NN Leased Property (5 years) to an Assisted Care Operator
Leased for 5 years to Operator-NN Lease w/rental increases-Cap Rate is actual at 7.5%
Marketing description
True 7.5% 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 NN (Double Net) lease structure. The tenant has recently executed a new 5-year lease, providing immediate income certainty and built-in rent growth.
Valuation & Underwriting Consideration
This asset should be evaluated based on its income performance and lease structure. As a single-family residence leased to an 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 intensity, and long-term lease security supported by a needs-based tenant.
The current lease begins at $5,600 per month, with annual scheduled increases as follows:
Year 2: $5,700/month
Year 3: $5,800/month
Year 4: $5,900/month
Year 5: $6,000/month
In addition to the initial term, the lease includes two additional 5-year renewal options, offering long-term income continuity and reduced rollover risk.
Under the NN lease structure, the Landlord is responsible for property taxes, insurance, and HOA fees, while the landlord retains ownership of a professionally operated residential asset with predictable cash flow. This investment delivers a true 7.5% cap rate, supported by contractual rent increases and a mission-critical use tenant.
Investment Highlights
Single-family home leased to assisted care operator
NN lease structure with landlord paying taxes, insurance, and HOA
New 5-year lease in place with two 5-year options
Scheduled annual rent increases throughout the lease term
Strong, stabilized income stream
True 7.5% cap rate
Passive ownership profile with long-term upside
This offering is ideal for investors seeking reliable cash flow, reduced management intensity, and long-term lease security backed by a needs-based tenant.
Net Operating Income (NOI) by Year
Sales Price: $825,000
Cap Rate: 7.5% (True)
Year 1 NOI (Base Year)
Cap Rate Calculation:
$825,000 × 7.5% = $61,875 NOI
Annual Rent Schedule
Year 1: $5,600/mo = $67,200/yr
Year 2: $5,700/mo = $68,400/yr
Year 3: $5,800/mo = $69,600/yr
Year 4: $5,900/mo = $70,800/yr
Year 5: $6,000/mo = $72,000/yr
Based on Year 1 NOI and contractual rent increases (with operating expenses assumed stable), projected NOI trends as follows:
Based on Year 1 NOI and contractual rent increases (with operating expenses assumed stable), projected NOI trends as follows:
Year Annual Rent Projected NOI
Year 1 $67,200 $61,875
Year 2 $68,400 $63,075
Year 3 $69,600 $64,275
Year 4 $70,800 $65,475
Year 5 $72,000 $66,675
NOI growth is driven by scheduled rent increases while maintaining a predictable expense profile.
Investment highlights
Single-family home leased to established assisted care operator
NN lease structure with predictable operating profile
New 5-year lease recently executed
Two additional 5-year tenant renewal options
Contractual annual rent increases built into lease
Initial rent of $5,600/month increasing to $6,000/month by Year 5
True 7.5% cap rate at $825,000 purchase price
Projected NOI growth through lease term
Needs-based tenant providing long-term demand stability
Attractive passive investment with reduced management intensity
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