Front-end compensation includes a $1,304,000 acquisition fee, $418,500 BD marketing allowance, $418,500 BD due diligence allowance, and $523,125 in O&O expenses. Ongoing asset management fees are $0, with a 1.00% refinancing fee and fully subordinated disposition fee.
Front-end fee composition
Acquisition Fee$1.30M3.12%
DST Admin & Accounting$0.03M0.07%
Dealer Fee$0.17M0.40%
Wholesaling Fee$0.42M1.00%
Total front-end sponsor compensation$4,038,525 6.19% of acq. cost
Acquisition Fee
$1,304,000
3.12%
DST Admin & Accounting
$27,500
0.07%
Dealer Fee
$167,400
0.40%
Wholesaling Fee
$418,500
1.00%
Total Front-end Fees
$4,038,525
6.19%
Strengths
- Zero annual asset management fee ($0)
- Disposition fee is fully subordinated
Concerns
- $1,304,000 sponsor acquisition fee
- Total offering expenses reach $4,038,525