The total acquisition cost is $82,270,000 ($82,805,000 inclusive of reserves) across 6 properties in 5 states. The purchase price reflects a 6.0% acquisition capitalization rate based on $4,890,945 of master tenant income.
Valuation ladder
Acquisition price$82.27M
Offering price$89.52M+8.8%
Appraised value$60.0% of offering
Cap rate spread & load
Acquisition cap rate6.00%
Upfront load (all-equity)6712000.00%equity = offering price
Load net of reserves7.19%
Acquisition Price
$82,270,000
Offering Price
$89,517,000
Appraised Value
The portfolio has a weighted average acquisition cap rate of 6.0%.
Upfront Load
$6,712,000
Load on Equity
—
Load on Offering Price
—
Acquisition Cap Rate
6%
Syndicated Cap Rate
—
Premium / Discount
—
Appraisal / Offering %
—
Less Reserves %
0.31%
Strengths
- Acquired at a 6.0% weighted average cap rate
- Diversified across 5 distinct state markets
Concerns
- Original asset vintages span from 1991 to 2002