Sponsor and broker-dealer compensation includes a $101,000 acquisition fee, up to 6.00% in selling commissions, a $90,631 dealer fee, a $90,631 wholesaling fee, a 0.50% annual asset management fee, a 7% property management fee, and a 2.00% disposition fee.
Front-end fee composition
Acquisition Fee$0.10M1.67%
O/O Expense Reimbursement$0.05M0.83%
Dealer Fee$0.09M1.50%
Wholesaling Fee$0.09M1.50%
Total front-end sponsor compensation$654,205 12.95% of acq. cost
Acquisition Fee
$101,000
1.67%
O/O Expense Reimbursement
$50,000
0.83%
Dealer Fee
$90,631
1.50%
Wholesaling Fee
$90,631
1.50%
Total Front-end Fees
$654,205
12.95%
Strengths
- Annual asset management fee is standard at 0.50% of offering proceeds
Concerns
- Property management fee is 7% of gross collected revenue
- 2.00% disposition fee upon property sale