The asset was acquired for $37,145,000, whereas total offering capitalization stands at $41,530,000, reflecting front-end fees, closing costs, and reserves.
Valuation ladder
Acquisition price$37.15M
Offering price$41.53M+11.8%
Cap rate spread & load
Upfront load on offering10.00%
Load on equity10.00%
Load net of reserves0.22%
Acquisition Price
$37,145,000
Offering Price
$41,530,000
Appraised Value
—
Upfront Load
—
Load on Equity
10%
Load on Offering Price
10%
Acquisition Cap Rate
—
Syndicated Cap Rate
—
Premium / Discount
—
Appraisal / Offering %
—
Less Reserves %
—
Strengths
- Funded improvement reserves of $750,000 included in capitalization
- Lender required reserves of $79,949 funded at close
Concerns
- Acquisition price of $37,145,000 marked up to $41,530,000 offering price
- Acquisition fee of $1,114,350 paid to sponsor