Transaction Metrics — DST Underwriting

The asset was acquired for $65,200,000 at a 5.32% acquisition cap rate, syndicating out at a total offering price of $75,255,000 and a 4.61% cap rate. Appraised value was not disclosed.

Valuation ladder

Acquisition price$65.20M

Offering price$75.25M+15.4%

Cap rate spread & load

Acquisition cap rate5.32%

Syndicated cap rate4.61%

71 bps of spread between acquisition and syndicated cap rate.

Upfront load on offering5.37%

Load on equity9.65%

Load net of reserves1.37%

Acquisition Price

$65,200,000

Offering Price

$75,255,000

Appraised Value

—

Upfront Load

—

Load on Equity

9.65%

Load on Offering Price

—

Acquisition Cap Rate

5.32%

Syndicated Cap Rate

4.61%

Premium / Discount

—

Appraisal / Offering %

—

Less Reserves %

2.72%

Strengths

Acquisition cap rate of 5.32%
$880,000 in improvement reserves funded upfront

Concerns

Syndicated cap rate compressed to 4.61%
Total front-end expenses equal $4,038,525