The property was acquired for $76,500,000 against a total offering price of $91,092,820, reflecting closing costs, fees, and reserve funding.
Valuation ladder
Acquisition price$76.50M
Offering price$91.09M+19.1%
Premium / discount to appraised value
6%
Cap rate spread & load
Syndicated cap rate6.93%
Upfront load on offering6.00%
Load on equity9.38%
Load net of reserves-4.74%
Acquisition Price
$76,500,000
Offering Price
$91,092,820
Appraised Value
—
Upfront Load
—
Load on Equity
—
Load on Offering Price
6%
Acquisition Cap Rate
—
Syndicated Cap Rate
6.93%
Premium / Discount
6%
Appraisal / Offering %
—
Less Reserves %
9.38%
Strengths
- Acquisition price of $76,500,000 supported by a 6.93% syndicated cap rate
- Total acquisition cost clearly scheduled at $86,825,466
Concerns
- Offering price carries a 6% load / premium over acquisition cost
- Independent appraised value is not disclosed in the excerpts