Front-end compensation includes an acquisition fee of $1,114,350 and selling commissions up to 6.0%. Ongoing compensation includes a $50,000 annual asset management fee and a 1.00% refinancing fee.
Front-end fee composition
Acquisition Fee$1.11M12.07%
DST Admin & Accounting$0.02M0.21%
Dealer Fee$0.05M0.50%
Wholesaling Fee$0.09M1.00%
Total front-end sponsor compensation$923,000 2.48% of acq. cost
Acquisition Fee
$1,114,350
12.07%
DST Admin & Accounting
$19,000
0.21%
Dealer Fee
$46,150
0.50%
Wholesaling Fee
$92,300
1.00%
Total Front-end Fees
$923,000
2.48%
Strengths
- Fixed annual asset management fee of $50,000
- Trust administration expenses detailed at $19,000
Concerns
- Upfront acquisition fee of $1,114,350
- 1.00% fee on any future refinancing principal