Sponsor compensation includes a $3,100,000 acquisition fee, $528,500 annual asset management fee, and a 2.95% disposition fee. Additional fees include a 1.00% refinancing fee and up to 5% construction management fee.
Front-end fee composition
Acquisition Fee$3.10M2.93%
O/O Expense Reimbursement$179.12M169.46%
DST Admin & Accounting$0.03M0.03%
Dealer Fee$0.53M0.50%
Wholesaling Fee$1.06M1.00%
Total front-end sponsor compensation$10,570,000 6.82% of acq. cost
Acquisition Fee
$3,100,000
2.93%
O/O Expense Reimbursement
$179,124,000
169.46%
DST Admin & Accounting
$27,500
0.03%
Dealer Fee
$528,500
0.50%
Wholesaling Fee
$1,057,000
1.00%
Total Front-end Fees
$10,570,000
6.82%
Strengths
- Disposition fee fixed at 2.95% of gross proceeds
- Trust administration fee capped at $50,000 annually
Concerns
- Acquisition fee of $3,100,000
- Annual asset management fee of $528,500