Sponsor compensation includes a $528,138 acquisition fee, an annual asset management fee of $22,555, a 2% disposition fee, and an 80% master tenant participation above specified hurdles.
Front-end fee composition
Acquisition Fee$0.53M20.71%
Dealer Fee$2.37M92.96%
Wholesaling Fee$0.20M7.97%
Total front-end sponsor compensation$2,370,575 6.83% of acq. cost
Acquisition Fee
$528,138
20.71%
Dealer Fee
$2,370,575
92.96%
Wholesaling Fee
$203,130
7.97%
Total Front-end Fees
$2,370,575
6.83%
Strengths
- Low ongoing annual asset management fee of $22,555
- Standard 2% disposition fee aligned with market exits
Concerns
- 80% master tenant participation on excess gross income above hurdle
- Multiple administrative and front-end transaction charges