Front-end fees include $4,342,026 in selling commissions, a $2,171,013 acquisition fee, a $1,085,507 dealer fee, and a $1,432,869 placement agent fee. Ongoing fees include $144,000/year asset management, $49,167/year trust admin, 5.00% property management, and a 3.0% disposition fee.
Front-end fee composition
Acquisition Fee$2.17M2.50%
DST Admin & Accounting$0.05M0.06%
Dealer Fee$1.09M1.25%
Total front-end sponsor compensation$7,294,605 10.13% of acq. cost
Acquisition Fee
$2,171,013
2.50%
DST Admin & Accounting
$49,167
0.06%
Dealer Fee
$1,085,507
1.25%
Total Front-end Fees
$7,294,605
10.13%
Strengths
- Annual asset management fee is capped at a fixed $144,000.
Concerns
- Substantial front-end syndication costs including 5.00% commissions and $2,171,013 acquisition fee.
- Disposition fee is set at 3.0%.