Master Tenant Year 1 base rent is $1,481,478, supplemented by bonus rent of 75% of excess effective gross income over benchmark. Both properties are currently 100% occupied with modern 2018/2019 cottage construction.
Ongoing fee rates
Disposition Fee2.95%
Refinancing Fee1.00%
Asset Mgmt Fee (annual)
$40,550
Master Tenant Income
$1,481,478
Property Mgmt Fee
The
property management fee that is payable to CSAM pursuant to its property management agreement with the Master Tenant will flow through to the Property Manager.
Disposition Fee
2.95%
Refinancing Fee
1.00%
Trust Administration
The
of Signatory Trustee or an Affiliate will receive an annual fee for providing Trust administration, accounting and investor services in an amount of $27,500 at the acquisition of the Property to cover expenses for the first year and up to $27,500 per year thereafter for the holding period ("DST Administration and Accounting Fee").
Strengths
- 100% occupancy reported at both Kerrville and Round Rock
- Master Tenant structure provides $1,481,478 in Year 1 base rent
- Bonus rent provision captures 75% of revenue outperformance
Concerns
- Portfolio of 64 units creates concentration risk per tenant vacancy
- Master lease performance depends on operational execution of active adult model
- Property management fee flows through directly to third-party manager