Hello. I am considering investing in a retail property that is NNN leased to a very solid national tenant (7-11). This would be my first commercial real estate investment and wanted to obtain some advice.
1) The property is leased for 10 years with 3 5-year renewal options. Rent escalation are 10% every five years with current cap rate of 6.5%. Is this a reasonable price for a NNN property?
2) In looking at my returns, what should I assume as my interest rate and closing costs. I'm assuming a interest rate of 6.5% - is this reasonable? I have excellent credit and am willing to put 20-25% down.
3) What other initial costs might I incur? I'm thinking maybe attorney fees to review the current lease and the cost of setting up a corp or llc. Am I overlooking anything?
4) What other costs might I incur on an ongoing basis? I've just thought about attorney and accounting fees - am I missing anything?
5) Any other gotchas or things I should be aware of?

Thanks for your help.