How to properly analyze a syndication offer

[Bryan Watts]

Hi folks - I have an opportunity to participate in a syndicated investment, as presented to me by a friend (trustworthy) who works in commercial lending. The face value numbers are intriguing: 7% preferred return with excess split 70/30; 7-year expected hold period and after return of principle, profits then split 50/50. 2% acquisition fee of purchase price and ongoing 5% fee (EGI) for management. Projected Cash on cash is a little over 11% yearly. Aside from due diligence on the market, the sponsor, and his support team (legal, accountants, etc), what else do I need to consider in evaluating this opportunity? I should mention as well that I currently hold no investment property, so I'm not sure how this would impact my taxes as well. Any advice?