Sponsor compensation includes an acquisition fee of $668,000, a 2.0% disposition fee, a 1.50% asset management fee, and a property management fee of 3.00% of gross revenues (or $1,500/month).
Front-end fee composition
Acquisition Fee$0.67M1.65%
Carrying Costs$1.62M4.00%
Dealer Fee$1.01M2.50%
Total front-end sponsor compensation$3,844,497 11.51% of acq. cost
Acquisition Fee
$668,000
1.65%
Carrying Costs
$1,618,736
4.00%
Dealer Fee
$1,011,710
2.50%
Total Front-end Fees
$3,844,497
11.51%
Strengths
- Clear contractual fee caps and structural disclosure
Concerns
- 2.0% disposition fee and 1.50% annual asset management fee apply