Sponsor and affiliate compensation includes a $1,226,200 acquisition fee, an annual asset management fee of $52,877, a 2.0% disposition fee on gross sales price, and potential construction management fees.
Front-end fee composition
Acquisition Fee$1.23M24.52%
O/O Expense Reimbursement$0.01M0.20%
Dealer Fee$0.21M4.26%
Wholesaling Fee$0.19M3.84%
Total front-end sponsor compensation$2,397,375 6.42% of acq. cost
Acquisition Fee
$1,226,200
24.52%
O/O Expense Reimbursement
$10,000
0.20%
Dealer Fee
$213,100
4.26%
Wholesaling Fee
$191,790
3.84%
Total Front-end Fees
$2,397,375
6.42%
Strengths
- Asset management fee clearly defined at $52,877 annually
- Selling commission waivers available for RIA investors
Concerns
- Acquisition fee of $1,226,200 paid upfront to sponsor
- Disposition fee of 2.0% upon ultimate property sale