Sponsor compensation includes an acquisition fee of $405,000, an annual asset management fee of $40,000, a 2.5% disposition fee, and a 1% refinancing fee. Up to 6.00% selling commissions and $395,872 dealer/wholesaling fees are paid at closing.
Front-end fee composition
Acquisition Fee$0.41M3.58%
Dealer Fee$0.40M3.50%
Wholesaling Fee$0.40M3.50%
Total front-end sponsor compensation$1,349,510 7.50% of acq. cost
Acquisition Fee
$405,000
3.58%
Dealer Fee
$395,872
3.50%
Wholesaling Fee
$395,872
3.50%
Total Front-end Fees
$1,349,510
7.50%
Strengths
- Predetermined annual asset management fee fixed at $40,000
- Property management fees are paid directly by the Master Tenant
Concerns
- $405,000 acquisition fee paid to sponsor at closing
- 2.5% disposition fee payable on gross sales price at exit