The property was acquired for $5,050,000, which equals the as-is appraised value from December 10, 2025. Total acquisition cost with expenses and $100,000 in reserves amounts to $5,387,844.
Valuation ladder
Acquisition price$5.05M
Offering price$6.04M+19.6%
Appraised value$100.0% of offering
Cap rate spread & load
Acquisition cap rate5.00%
Upfront load (all-equity)10.83%equity = offering price
Load net of reserves9.17%
Acquisition Price
$5,050,000
Offering Price
$6,042,049
Appraised Value
The “as-is” appraised market value of the fee interest in the Property as of December 10, 2025 was $5,050,000.
Upfront Load
—
Load on Equity
10.83%
Load on Offering Price
10.83%
Acquisition Cap Rate
5%
Syndicated Cap Rate
—
Premium / Discount
—
Appraisal / Offering %
83.63%
Less Reserves %
—
Strengths
- Purchase price matches the appraised value of $5,050,000
- $100,000 in upfront reserves funded at close
Concerns
- Total front-end fees of $654,205 create a 10.83% equity load
- Appraisal covers 83.63% of the total offering raise