Altnvest
LibraryHPI Deer Creek DST
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Transaction Metrics

Processed

HPI Deer Creek DST

Preview Report

The real estate was acquired for $46,000,000 at a 6% cap rate. Total acquisition costs including reserves, fees, and expenses equal $53,229,065.

Valuation ladder

Acquisition price$46.00M
Offering price$53.23M+15.7%

Cap rate spread & load

Acquisition cap rate6.00%
Upfront load on offering6.00%
Load on equity7.75%
Load net of reserves-4.74%
Acquisition Price

$46,000,000

Offering Price

$53,229,065

Appraised Value

—

Upfront Load

—

Load on Equity

7.75%

Load on Offering Price

6%

Acquisition Cap Rate

6%

Syndicated Cap Rate

—

Premium / Discount

—

Appraisal / Offering %

—

Less Reserves %

—

Strengths

  • Acquisition cap rate of 6%
  • Total capitalized reserves of $2,918,400 funded at closing

Concerns

  • $1,150,000 acquisition fee paid to sponsor affiliate
  • Purchase price of $46,000,000 versus $50,490,981 total acquisition cost prior to additional reserves