Alex,
May be I'm misunderstanding the models logic but I have a question? I'm assuming inputs Address2 and Select Features:Address are the same layer (may be a point layer)? You do a query selection on this and use this selection to select the parcels. Then you use an iterator which is grouping by recnum. Is recnum unique within the selection? If so then with each iteration you are writing recnum to the selection in the address layer and this I guessing is overwriting the value again? If this model is allowed to run to completion is the value written into Adress the very last recnum?
Duncan