NNN Walmart with 8.5 cap rate

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Posted by Prashant on November 19, 2008 at 23:48:46:
I got an email for a deal which is NNN with 8.5 cap rate. The tenant is Walmart. See the first listing here http://cbremarketing.com/ve/ZZq907861718199BCj27f1
20 Years
Interest rate: 6.000%
Loan amount: $ 3,343,800.00
Yearly debt service: $23,956.02 * 12 = $287,472.24
Annaul cash flow: %3246
Does does not look like a good deal. Am I missing something?
If I were to assume 20% down, the the annual cashflow will be $54,248. That means a cash on cash return of 8.11%. Even that is not good. Why would someone do this deal? Thanks.

Follow Ups:

Re: NNN Walmart with 8.5 cap rate Tim 20:51:38 11/20/08 (0)

Re: NNN Walmart with 8.5 cap rate Steve 18:13:07 11/20/08 (0)

Re: NNN Walmart with 8.5 cap rate john 17:04:05 11/20/08 (0)

Re: NNN Walmart with 8.5 cap rate Grilly 06:43:45 11/20/08 (3)

Im confused! Mike 06:26:12 11/22/08 (2)

Re: Im confused! Grilly 10:09:16 11/24/08 (0)

Re: Im confused! brandoncbsre 04:15:32 11/24/08 (0)

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