The asset was acquired for $60,800,000 at a 7.53% acquisition cap rate. Total acquisition cost with reserves is documented at $61,699,022.
Valuation ladder
Acquisition price$60.80M
Offering price$70.77M+16.4%
Cap rate spread & load
Acquisition cap rate7.53%
Upfront load (all-equity)43.54%equity = offering price
Acquisition Price
$60,800,000
Offering Price
$70,771,625
Appraised Value
—
Upfront Load
—
Load on Equity
—
Load on Offering Price
—
Acquisition Cap Rate
7.53%
Syndicated Cap Rate
—
Premium / Discount
—
Appraisal / Offering %
—
Less Reserves %
—
Strengths
- Strong acquisition cap rate of 7.53%
- $60,800,000 purchase price backed by $61,699,022 in total capitalized costs
Concerns
- Capitalized reserves and acquisition costs add $899,022 over purchase price
- Single property acquisition lacks geographical diversification