How do you analyze 3 Condos + Storefront?

[Jeremy T.]

A peer asked my to analyze a deal where they plan to build three condos and a storefront. After selling off the condos they would presumably keep the storefront? Or do people sell the storefront? Here are the rough numbers that were shared:

Total Size: 7,500Sq.Ft.

Buy: $350k

Build $850k

All in: $1.2M

Exit $1.4M + $175k storefront valuation

How do I know whether this is a good deal? On the surface, I want to tell them it's a very good deal because you have cashflow from the sale of condos plus a financing exit with the cash out refi on the storefront. If you've done deals like this appreciate your feedback.