not much room for negotiation

[John C]

We just saw a property that interets us. However, the seller is being stubburn and not leaving much room for negotiation. The complex nets around 130 ... but he claims he just turn down an offer of 1.9M. That means he would have sold the property for around a 6.5 % cap rate. Yet, in this paritcular area properties are being sold for an 8 to 9% cap rate.

I am just wandering if we should walk away from this deal.