Underwriting projects a Year 1 investor return of 4.4% and an average full-term return of 4.55%. Property management is fee-structured at the greater of 2.50% of gross receipts or $8,500 monthly.
Ongoing fee rates
Asset Mgmt Fee (annual)0.20%the Purchase Price (i.e., $133,200)
Master Tenant Income10%
Disposition Fee3.5%
Asset Mgmt Fee (annual)
0.20%
of the Purchase Price (i.e., $133,200)
Master Tenant Income
10%
Property Mgmt Fee
Greater
of (x) 2.50% of the Gross Receipts from the Property or (y) $8,500, calculated on a per month basis
Disposition Fee
3.5%
Trust Administration
Account
Acceptance Fee; Annual Independent Trustee Fee (if applicable)
Strengths
- Master tenant structure supported by large liquidity reserves
- Steady projected full-term average distribution of 4.55%
Concerns
- Initial Year 1 distribution starts at a moderate 4.40%