Front-end sponsor and syndication compensation includes an acquisition fee of $931,250, dealer fee of $294,012, BD due diligence allowance of $294,012, and BD marketing allowance of $294,012. Ongoing management includes an annual asset management fee of $37,250, with a 1% disposition refinancing fee.
Front-end fee composition
Acquisition Fee$0.93M3.96%
Dealer Fee$0.29M1.25%
Total front-end sponsor compensation$2,199,285 5.90% of acq. cost
Acquisition Fee
$931,250
3.96%
Dealer Fee
$294,012
1.25%
Total Front-end Fees
$2,199,285
5.90%
Strengths
- Predictable ongoing annual asset management fee of $37,250
- Compensation structure follows standardized institutional syndication benchmarks
Concerns
- Broker-dealer allowances total $588,024 between marketing and due diligence
- Acquisition fee of $931,250 paid directly to sponsor