The real estate was acquired for $23,000,000 at a 4.61% acquisition cap rate. Total acquisition cost with financing, reserves, and transaction costs reaches $36,004,367 within a total offering capitalization of $37,899,297.
Valuation ladder
Acquisition price$23.00M
Offering price$37.90M+64.8%
Cap rate spread & load
Acquisition cap rate4.61%
Upfront load on offering5.00%
Load on equity10.00%
Load net of reserves1.98%
Acquisition Price
$23,000,000
Offering Price
$37,899,297
Appraised Value
—
Upfront Load
—
Load on Equity
—
Load on Offering Price
—
Acquisition Cap Rate
4.61%
Syndicated Cap Rate
—
Premium / Discount
—
Appraisal / Offering %
—
Less Reserves %
4.1%
Strengths
- Acquisition price of $23,000,000 established at 4.61% cap rate
- Substantial funded reserve package totaling over $1,140,000
Concerns
- Total acquisition cost expands to $36,004,367 due to financing, fees, and reserves
- Appraised unloaded cap rate not explicitly disclosed in excerpts