Sponsor and affiliates receive a 5.00% selling commission, $631,250 placement fee, 5.00% property management fee, $20,000/year asset management fee starting in 2027 (+4% annually), and a 2% disposition fee (+0.5% internal costs).
Front-end fee composition
Strengths
- Asset management fee is deferred until 2027.
Concerns
- Property management fee is set at 5% of gross annual rents.
- Disposition fee is 2% plus up to 0.5% internal expenses.