CRE Retail Gurus: Grocery Deal Analysis Gut Check Needed
Scenario: You are working on a deal with a major Grocery Tenant (lets say rhymes with shmamazon) on a space that has been vacant for 4 years now. Would require a complete demolition and redevelopment of this existing space. LL Work/Buildout would need be ~100% financed. Would be 40k sqft of a 500k sqft shopping center.

Using these basic inputs, would you do this deal?

Deal Term: 15 Years 
Total Buildout/LL Cost: ~$12.8 million (prior to financing costs) 
Average Annual Lease Revenue: $961,500 - Total Lease Revenue estimated to be $14.4 million over term of the deal.

From a pure cash flow perspective - obviously wouldn't do this deal, but factoring in a likely exit within the next 15 years w/ a great credit tenant on a structurally vacant space... Does that change anything in your opinions?
[{"id": "hakkjcp", "text": "Considering that you can sell a 15 year, new construction, A credit,  grocery deal for low to mid 5 cap I would say do it and exit immediately.", "replies": [{"id": "hakw6ij", "text": "Agreed.", "replies": [], "depth": 2}], "depth": 1}, {"id": "halbwr2", "text": "Your yield on cost is spectacular. You can get super high leverage debt and can probably 4x your money if you sell once complete", "replies": [], "depth": 1}]