The purchase price is $83,000,000, leading to a total acquisition cost of $90,186,350 inclusive of fees, carry costs, and $2,173,049 in reserves. The syndicated cap rate is 5.82%.
Valuation ladder
Acquisition price$83.00M
Offering price$45.67M+-45.0%
Cap rate spread & load
Syndicated cap rate5.82%
Upfront load (all-equity)9.50%equity = offering price
Load net of reserves3.97%
Acquisition Price
$83,000,000
Offering Price
$45,670,000
Appraised Value
—
Upfront Load
—
Load on Equity
—
Load on Offering Price
—
Acquisition Cap Rate
—
Syndicated Cap Rate
5.82%
Premium / Discount
—
Appraisal / Offering %
—
Less Reserves %
—
Strengths
- Syndicated cap rate of 5.82%
- Improvement reserves funded at $2,173,049
Concerns
- Total acquisition cost of $90,186,350 exceeds purchase price by $7,186,350
- Carry costs capitalized at $1,795,000