thoughts on NNN lease property

[Marylynn B.]

Hey everyone, I would love some input on a property I am considering.  This is preliminary info so all the details are not in but would love your thoughts on first glance.  National company, BBB- rating.   National retailer developing next door with strong sales.  My concerns are:

The demographics only predict a 2% increase in population for the area.

5 years left on the end of the lease.  Option to renew with a 5.9% increase.

scenario 5/25
Purchase Price: $800,000
Equity: $240,000
Debt: $560,000
Interest Rate: 4.5%
Fixed: 5 years
Amortization: 25 years
NOI: $60,000
Debt Service: $37,352
Cash Flow: $22,648
Cash on Cash Return: 9.4%
Cash on Cash Plus Prinicpal Paydown year 1: $35,053
CoC+ PP return: 14.6%
Debt at the end of 5 years: $492,004

Let me know your thoughts.  :)