The portfolio acquisition price is $20,752,750, with total upfront load adding $3,662,250 to achieve the $25,700,000 total offering price.
Valuation ladder
Acquisition price$20.75M
Offering price$25.70M+23.8%
Cap rate spread & load
Upfront load (all-equity)10.00%equity = offering price
Acquisition Price
$20,752,750
Offering Price
$25,700,000
Appraised Value
—
Upfront Load
$3,662,250
Load on Equity
10%
Load on Offering Price
10%
Acquisition Cap Rate
—
Syndicated Cap Rate
—
Premium / Discount
—
Appraisal / Offering %
—
Less Reserves %
—
Strengths
- Acquisition price of $20,752,750 covers a large multistate mineral footprint
- Direct asset purchase structured into 234 ownership units
Concerns
- Upfront load reaches $3,662,250 over acquisition price
- Load on offering price is 10%