Mini Storage Question

[Jay London]

I've bought and sold some apartment buildings along with several other commercial buildings that I was able to do a value add to, so I used the same principle to underwrite this mini-storage but what they are asking and what the financials are saying are so far apart nothing is making sense. I've spoke with the listing broker and asked him how he came up with the list price and his cap rate and of course he says the market sets the price. It has been under contract that fell through. I'm going to say the buyer backed out after digging into the financials. I've went through Costar for comps and the cap rate for the sold comps are no where near the 5.25% cap they are asking. It appears that the average on past 12 month sales is floating around 8-9% cap. Can someone with more knowledge on mini-storages take a look at the financial sheet and tell me what I'm missing. I don't see where BP will let me attach PDF of the

Financials so if you don't mind I'll have to email or attach it some other way for you to see it. 

To me this thing barley even cash flows (with financing of course) after the 2 year scenario of the pro-forma based on a purchase price on actuals at a 8.5% cap. They are asking $2.8mm and I don't think its work more than $1.5mm as it stands. What am I missing. 

Thanks in advance. 

Jay