Front-end sponsor and dealer compensation includes a $967,500 acquisition fee, $189,493 wholesaling fee, $189,493 dealer fee, and a $652,653 depositor fee. Ongoing and backend fees include a 3.5% disposition fee and up to 5% construction management fee.
Front-end fee composition
Acquisition Fee$0.97M5.11%
O/O Expense Reimbursement$37.90M200.00%
DST Admin & Accounting$0.01M0.08%
Dealer Fee$0.19M1.00%
Wholesaling Fee$0.19M1.00%
Total front-end sponsor compensation$1,894,930 8.24% of acq. cost
Acquisition Fee
$967,500
5.11%
O/O Expense Reimbursement
$37,899,297
200.00%
DST Admin & Accounting
$15,000
0.08%
Dealer Fee
$189,493
1.00%
Wholesaling Fee
$189,493
1.00%
Total Front-end Fees
$1,894,930
8.24%
Strengths
- Clear contractual schedule of acquisition, disposition, and administrative fees
Concerns
- $967,500 acquisition fee plus $652,653 depositor fee payable upfront
- 3.5% disposition fee on gross property sales proceeds