Executive Summary

The equity offering target is $48,900,000. Total upfront offering expenses are $3,740,850 (7.65% load), which encompasses selling commissions of up to 5.0%, broker-dealer allowances, placement fees of $562,350, and organization and offering costs.

The offering seeks to raise $48,900,000 in equity alongside $40,801,000 in debt to acquire a 265-unit multifamily complex in Dayton, KY. The structure features a 2.16x DSCR and an acquisition cap rate of 4.75%. Front-end fees and offering expenses represent 7.65% ($3,740,850) of the offering equity.

The transaction is supported by a strong debt service coverage ratio of 2.16x, providing cash flow protection against debt obligations. PASSCO brings institutional scale with $1,800,000,000 in assets under management. Furthermore, the capitalization includes substantial capital improvement reserves of $3,342,140 alongside master tenant and lender reserves.

Sources include $48,900,000 in offering equity and $40,801,000 in loan proceeds. Primary uses comprise the $78,566,250 property acquisition, $3,740,850 in upfront offering expenses, $1,140,826 in loan and lender expenses, $1,227,906 in carry costs, and $3,342,140 in improvement reserves.

Key underwriting risks include an upfront fee load of 7.65% ($3,740,850) that reduces invested capital efficiency. Additionally, the initial acquisition cap rate is low at 4.75%, requiring operational performance to achieve the 5.63% syndicated cap rate. The specific year of construction for the property is not disclosed in the offering materials.

The acquisition cap rate is 4.75% on a purchase price of $78,566,250, while the syndicated cap rate is calculated at 5.63%. Debt financing of $40,801,000 complements $48,900,000 in equity, producing a total capitalization that accommodates $3,740,850 in upfront load and over $3.9 million in total reserves. Debt coverage remains strong at 2.16x with projected average full-term income of 4.81%.