The asset was acquired for $155,000,000 at a 5.36% acquisition cap rate against an aggregate offering price of $179,124,000. Appraised value equals 88.43% of the total offering capitalization.
Valuation ladder
Acquisition price$155.00M
Offering price$179.12M+15.6%
Cap rate spread & load
Acquisition cap rate5.36%
Syndicated cap rate4.02%
134 bps of spread between acquisition and syndicated cap rate.
Upfront load on offering5.90%
Load on equity10.00%
Load net of reserves0.48%
Acquisition Price
$155,000,000
Offering Price
$179,124,000
Appraised Value
—
Upfront Load
—
Load on Equity
—
Load on Offering Price
—
Acquisition Cap Rate
5.36%
Syndicated Cap Rate
4.02%
Premium / Discount
—
Appraisal / Offering %
88.43%
Less Reserves %
3.48%
Strengths
- Acquisition cap rate of 5.36%
- Upfront improvement reserves of $2,376,000
Concerns
- Appraisal represents 88.43% of total offering price
- Total front-end fees and expenses of $10,570,000