Transaction Metrics — DST Underwriting

The property transaction closed at a purchase price of $37,250,000, which reflects an entry cap rate of 5.77%. Total acquisition cost before reserves was $38,229,605, rising to $41,776,714 when factoring all closing costs and master tenant reserves.

Valuation ladder

Acquisition price$37.25M

Offering price$43.98M+18.1%

Cap rate spread & load

Acquisition cap rate5.77%

Upfront load on offering5.00%

Load on equity9.35%

Load net of reserves-0.08%

Acquisition Price

$37,250,000

Offering Price

$43,975,998

Appraised Value

—

Upfront Load

—

Load on Equity

—

Load on Offering Price

—

Acquisition Cap Rate

5.77%

Syndicated Cap Rate

—

Premium / Discount

—

Appraisal / Offering %

—

Less Reserves %

—

Strengths

Acquisition cap rate of 5.77% provides a positive spread over debt costs
Total acquisition cost including initial capital reserves is $41,776,714

Concerns

Title and recording costs totaled $215,754
Acquisition fee of $931,250 paid at closing