The transaction utilizes $41,000,000 in fixed-rate debt at an interest rate of 5.708% with interest-only payments for the entire term. Financing expenses total $2,179,840, resulting in a 44.9% loan-to-value ratio.
Leverage profile
Loan amount$41.00M44.9% of offering · 44.9% LTV
Offering equity$50.38M55.1% of offering
Loan Amount
$41,000,000
Term
Interest Only For Full Term
Interest Rate
5.708%
Fixed / Variable
Fixed
Prepayment Penalty
—
DSCR
—
Acquisition LTV
44.9%
Offering LTV
44.9%
Strengths
- Moderate 44.9% offering LTV provides downside equity protection.
- Fixed 5.708% interest rate with full-term interest-only payments.
Concerns
- Interest rate of 5.708% exceeds the entry acquisition cap rate of 5.5%.