How to structure partnership with lodging business

[Andrew Savage]

Hey Everybody!  I'm new to commercial property and normally on the tenant side of things.  I'm in the process of opening a lodging business and the project costs (mostly property and buildout) have exceeded my capacity for borrowing.  I'd like to find a capital partner that's on board with my plan and will essentially buy the property and lease it to me.  They'd provide 90% of the down payment and guarantee the loan.  I know what works from the tenant's point of view, but does this make sense from the commercial investing side?  The deal would look something like this from the capital partner's perspective:

Project Costs: $1MM  ($250k down payment)

Net Operating Income:  $80k

Annual Debt Service:  $50k

Cash Flow after Debt Service:  $30k

Cash on Cash Return:  12%

Return on Project Costs:  8%