Sponsor compensation includes selling commissions up to 5.0%, a $589,798 dealer fee, a $589,798 placement agent fee, and a 0.15% per annum trust administration and asset management fee.
Front-end fee composition
O/O Expense Reimbursement$1.00M1.70%
Dealer Fee$0.59M1.00%
Total front-end sponsor compensation$4,423,488 4.90% of acq. cost
O/O Expense Reimbursement
$1,000,000
1.70%
Dealer Fee
$589,798
1.00%
Total Front-end Fees
$4,423,488
4.90%
Strengths
- Asset management fee capped at 0.15% per annum
- Property management fee starts at a modest $4,950 per month
Concerns
- Selling commissions of up to 5.0%
- O/O expense reimbursement of $1,000,000