Sponsor and broker-dealer compensation includes a 6.0% sales commission, $1,665,000 acquisition fee, and $552,811 dealer fee. Ongoing compensation includes a 0.20% asset management fee and up to 3.5% disposition fee.
Front-end fee composition
Acquisition Fee$1.67M4.22%
O/O Expense Reimbursement$0.32M0.80%
Carrying Costs$1.04M2.62%
Loan Origination Fees$1.52M3.84%
Dealer Fee$0.55M1.40%
Total front-end sponsor compensation$3,731,474 5.60% of acq. cost
Acquisition Fee
$1,665,000
4.22%
O/O Expense Reimbursement
$315,892
0.80%
Carrying Costs
$1,035,162
2.62%
Loan Origination Fees
$1,516,912
3.84%
Dealer Fee
$552,811
1.40%
Total Front-end Fees
$3,731,474
5.60%
Strengths
- Asset management fee is competitive at 0.20% ($133,200/yr)
Concerns
- Upfront acquisition fee of $1,665,000
- Maximum 3.5% disposition fee at exit