The real estate was purchased for an acquisition price of $154,463,808, resulting in a total acquisition cost of $156,695,509. The acquisition cap rate stands at 7.25%, syndicating at 5.79% within the $168,949,386 offering price. The appraisal represents 95.88% of the offering price.
Valuation ladder
Acquisition price$154.46M
Offering price$168.95M+9.4%
Cap rate spread & load
Acquisition cap rate7.25%
Syndicated cap rate5.79%
146 bps of spread between acquisition and syndicated cap rate.
Upfront load on offering1.96%
Load on equity8.40%
Load net of reserves1.66%
Acquisition Price
$154,463,808
Offering Price
$168,949,386
Appraised Value
—
Upfront Load
—
Load on Equity
—
Load on Offering Price
—
Acquisition Cap Rate
7.25%
Syndicated Cap Rate
5.79%
Premium / Discount
—
Appraisal / Offering %
95.88%
Less Reserves %
—
Strengths
- Initial acquisition cap rate of 7.25%
- Total acquisition price of $154,463,808
Concerns
- Cap rate compression to 5.79% syndicated cap rate
- Appraisal-to-offering ratio of 95.88%