Sponsor compensation includes a $2,060,000 acquisition fee, up to 6.0% in broker-dealer sales commissions, a $924,581 dealer fee, an annual asset management fee of 0.20%, up to 3% property management fee, and a 3.5% disposition fee.
Front-end fee composition
Acquisition Fee$2.06M3.12%
O/O Expense Reimbursement$0.50M0.75%
Carrying Costs$2.38M3.61%
Loan Origination Fees$3.19M4.83%
Dealer Fee$0.92M1.40%
Total front-end sponsor compensation$6,207,904 6.03% of acq. cost
Acquisition Fee
$2,060,000
3.12%
O/O Expense Reimbursement
$495,311
0.75%
Carrying Costs
$2,384,323
3.61%
Loan Origination Fees
$3,190,973
4.83%
Dealer Fee
$924,581
1.40%
Total Front-end Fees
$6,207,904
6.03%
Strengths
- Annual asset management fee is structured at a competitive 0.20%.
- Property management fee is capped at up to 3% of Gross Receipts.
Concerns
- Substantial disposition fee of 3.5% of gross sales proceeds at exit.
- Sponsor receives a $2,060,000 acquisition fee at closing.