The portfolio acquisition price is $45,299,110 (7.00% acquisition cap rate), with $49,492 in title/recording costs and $371,000 in reserves, totaling $46,649,852 in total acquisition cost including reserves.
Valuation ladder
Acquisition price$45.30M
Offering price$50.50M+11.5%
Cap rate spread & load
Acquisition cap rate7.00%
Upfront load (all-equity)7.25%equity = offering price
Load net of reserves6.89%
Acquisition Price
$45,299,110
Offering Price
$50,500,000
Appraised Value
—
Upfront Load
$3,661,250
Load on Equity
7.25%
Load on Offering Price
7.25%
Acquisition Cap Rate
7%
Syndicated Cap Rate
—
Premium / Discount
—
Appraisal / Offering %
89.93%
Less Reserves %
—
Strengths
- Acquired at a 7.00% capitalization rate.
- Funded reserve pool established at $371,000.
Concerns
- Acquisition price of $45,299,110 requires $3,850,148 in syndication expenses to complete.