Need Additional Opinion on Potential Deal

[Wells Mangrum]

I have an accepted purchase agreement on a 85,000 square feet industrial building. This is a sale-lease-back meaning that the current owner is selling the property and agreeing to lease it back to me at a 7.75% capitalization rate. They are signing a 12 year NNN lease with 8% rent escalations at year 7. And this is a true NNN, they are even going to be responsible for foundation and roof. I will have literally zero maintenance responsibilities.

So everything sounds great right?  The one catch is that the business owner does not want to sign a personal guarantee.  So if his business goes under, I will have a large building with no tenant.  The business has been around for 20+ years. It has manufacturing facilities in two different states and it has contracts with big companies such as Menards, Lowes and Home Depot.  So it has some stability and they are profitable.

But I'm a little gun shy without the personal guarantee.  Also, I worry that macroeconomic conditions are going to cause capitalization rates to start creeping upward and real estate prices to start falling.  So I think that I may be timing this wrong.  I am considering use a contingency to cancel the purchase agreement.  

My broker likes the deal. My banker thinks it is ok.  What do others think about this deal?  I know that it is impossible for you to give a full analysis with these sparse details.  But I'm truly on the fence and I'd appreciate additional opinions.