Is this joint venture with a developer good deal in connecticut?

[Rao Mu]

I got in touch with a developer who is looking for someone to put equity into his project. Here is his proforma, 

- No. of units are 44 (75% 1 bed, 25% 2 bed)

- site acquisition costs are 1800000

- Construction costs are 5.2 million

- Total cost per unit around 159000

- NOI after taxes/insurance and other things - 600K

Here's his proposal-

1) He is looking for 600K for 40% ownership

2) After built and stabilized, he wants to have the option to buy back my share at 6% cap rate.

I compared the comps with the next door he built (122 units) and the rental comps match fairly well. He told me he is not able to get the loan for construction because they want the whole acquistion costs paid in cash. 

Here's what I am thinking will happen 2 years from now (after stabilizing):

1) If he buys me out, my share would be = (600K/0.06 - 1800000 - 5.2 mill) * 0.4= 1200000

2) If he doesn't buy me out, we refinance the project for 5% cap rate or so and I will get the cashflow and also, I can get the equity back.

Any thoughts?