The real estate was acquired for $103,000,000, which the sponsor reports as $2,000,000 below appraised value, reflecting a 5.64% acquisition cap rate. Total acquisition cost with reserves stands at $116,483,625 against the $122,691,529 offering price.
Valuation ladder
Acquisition price$103.00M
Offering price$122.69M+19.1%
Appraised value$20.0% of offering
Premium / discount to appraised value
0.15%
Cap rate spread & load
Acquisition cap rate5.64%
Syndicated cap rate5.64%
0 bps of spread between acquisition and syndicated cap rate.
Upfront load on offering9.40%
Load on equity9.40%
Load net of reserves0.96%
Acquisition Price
$103,000,000
Offering Price
$122,691,529
Appraised Value
—
Upfront Load
$9.40
Load on Equity
—
Load on Offering Price
9.40%
Acquisition Cap Rate
5.64%
Syndicated Cap Rate
5.64%
Premium / Discount
0.15%
Appraisal / Offering %
85.60%
Less Reserves %
3.67%
Strengths
- Purchase price of $103,000,000 reflects a 5.64% acquisition cap rate.
- Property acquired $2,000,000 below third-party appraised value.
Concerns
- Total front-end acquisition fees, carrying costs, and expenses add $13,483,625 over the purchase price to reach total acquisition cost with reserves.
- Property vintage dates to 1999.