The asset was acquired for $81,500,000 at an acquisition cap rate of 4.7%. Total acquisition cost with reserves stands at $87,797,703.
Valuation ladder
Acquisition price$81.50M
Offering price$46.17M+-43.3%
Cap rate spread & load
Acquisition cap rate4.70%
Upfront load (all-equity)12.05%equity = offering price
Load net of reserves10.20%
Acquisition Price
$81,500,000
Offering Price
$46,170,900
Appraised Value
—
Upfront Load
—
Load on Equity
—
Load on Offering Price
—
Acquisition Cap Rate
4.7%
Syndicated Cap Rate
—
Premium / Discount
—
Appraisal / Offering %
—
Less Reserves %
—
Strengths
- Total acquisition cost defined at $87,797,703
- Property completed recently in 2023
Concerns
- 4.7% acquisition cap rate provides narrow initial operational margin
- Acquisition LTV is 57.9% against the $81,500,000 price