Sponsor compensation includes a $1,630,500 acquisition fee, property management fee of $3,000 or 6% of gross revenues, a 2.0% disposition fee, and a 1.0% refinancing fee, while the asset management fee is $0.
Front-end fee composition
Acquisition Fee$1.63M2.52%
Carrying Costs$0.25M0.39%
Dealer Fee$2.27M3.50%
Wholesaling Fee$0.01M0.02%
Total front-end sponsor compensation$6,800,465 12.57% of acq. cost
Acquisition Fee
$1,630,500
2.52%
Carrying Costs
$250,000
0.39%
Dealer Fee
$2,266,822
3.50%
Wholesaling Fee
$10,000
0.02%
Total Front-end Fees
$6,800,465
12.57%
Strengths
- No annual asset management fee charged to the trust
Concerns
- Property management fee of up to 6.0% of monthly gross revenue
- 2.0% disposition fee on gross asset sale value