Sponsor compensation includes a $2,347,500 acquisition fee, a 3.5% property management fee, escalating annual asset management fees from $75,000 to $275,000, and a 3.0% disposition fee.
Front-end fee composition
Acquisition Fee$2.35M0.23%
O/O Expense Reimbursement$91.51M9.15%
Dealer Fee$1.74M0.17%
Wholesaling Fee$1.74M0.17%
Total front-end sponsor compensation$8,693,363 11.11% of acq. cost
Acquisition Fee
$2,347,500
0.23%
O/O Expense Reimbursement
$91,509,083
9.15%
Dealer Fee
$1,738,673
0.17%
Wholesaling Fee
$1,738,673
0.17%
Total Front-end Fees
$8,693,363
11.11%
Strengths
- Administrative trustee serves without compensation
Concerns
- Asset management fees scale upward over the holding period to $275,000 annually
- 3.0% disposition fee payable upon exit