Sponsor and affiliate fees include a $534,000 acquisition fee, $1,962,000 in selling commissions, $408,750 in O&O expenses, $327,000 wholesaling fee, $130,800 dealer fee, up to $81,750 in combined annual asset management fees, and a 2.95% disposition fee.
Front-end fee composition
Acquisition Fee$0.53M1.63%
O/O Expense Reimbursement$0.33M1.00%
Carrying Costs$0.33M1.00%
DST Admin & Accounting$0.03M0.08%
Loan Origination Fees$0.00M0.00%
Dealer Fee$0.13M0.40%
Wholesaling Fee$0.33M1.00%
Total front-end sponsor compensation$3,155,550 11.82% of acq. cost
Acquisition Fee
$534,000
1.63%
O/O Expense Reimbursement
$327,000
1.00%
Carrying Costs
$327,000
1.00%
DST Admin & Accounting
$27,500
0.08%
Loan Origination Fees
$0
0.00%
Dealer Fee
$130,800
0.40%
Wholesaling Fee
$327,000
1.00%
Total Front-end Fees
$3,155,550
11.82%
Strengths
- Annual DST accounting/admin fee capped at $27,500
- Annual asset management fees clearly capped by property ($41,200 Kerrville, $40,550 Round Rock)
- No construction management fee disclosed
Concerns
- 2.95% disposition fee payable upon exit
- Total front-end sponsor and broker compensation exceeds $3.15M
- $534,000 acquisition fee paid at closing