The asset is projected to generate an average income of 7% over the full 20-year term. Trust administration involves initial, monthly, and execution fees paid to the Delaware Trustee.
Ongoing fee rates
Disposition Fee2%
Asset Mgmt Fee (annual)
$77,668
Disposition Fee
2%
Refinancing Fee
One
of percent (1.0%) of the principal amount of the new loan
Trust Administration
The
Trust is required to pay the Delaware Trustee an initial fee, monthly fees, and document execution fees for its services.
Strengths
- Projected average income of 7% over the full term
- Long operational term under 20-year lease
Concerns
- Ongoing Delaware Trustee administrative fees required
- Operational performance tied entirely to one 50-unit facility