Will you help me see is this deal is decent?

[Faiz Yusufi]

Newly constructed retail with 10 units on busy intersection. Town is in texas and growing at rapid pace. 
$4,250,000 purchase price 
7.25% cap

NNN leases with roof/structure responsibility.

Regional/local tenants. 
10 total tenants, all units 2000 sq ft and under
4 Tenants have leases expiring in 24 months   , other 6 have 5yr + leases. 

[Joel Owens]

Get a good broker or commercial retail attorney. You are looking at putting millions down and a loan for the rest. Not all areas in Texas are created equal.

7.25 cap sounds out of place for what retail centers are trading at there. In that price range high quality is in the low to mid 6's for cap rate at best.

It's all about the leases and tenant friendly or landlord friendly. With a big part of the center coming up for lease renewal in under 2 years the lender will stress test the property for underwriting and want heavy reserves held back for the probability that tenants might not renew. Don't just look at cap rate. In place leases could be inflated versus current market rent and you are buying a 5 cap. Also if 7.25 cap rate is based on full center with zero vacancy taken out that won't fly with an appraiser. Also if they say market vacancy is 3% in OM that could be bull also.

For instance if you have 10 tenant all equal in size to 2,000 sq ft you have a 20k sq ft building. If one tenant goes out you have 10% vacancy and NOT 3%. After you factor all of this not likely a 7.25 cap rate asking. If it's weak tenants and not credit rated it's historically proven over a 5 to 10 year hold even in a strong location that some tenants will go dark. The reason is they are undercapitalized, sell off the business to a poor operator, have failing health, pass away, etc. 

Good luck.