The transaction includes a purchase price of $34,250,000, $2,373,875 in offering expenses, $612,773 in loan/lender expenses, and $1,460,225 in total reserves, yielding total capitalization of $42,730,000.
Valuation ladder
Acquisition price$34.25M
Offering price$21.53M+-37.1%
Cap rate spread & load
Upfront load (all-equity)11.03%equity = offering price
Load net of reserves4.33%
Acquisition Price
$34,250,000
Offering Price
$21,530,000
Appraised Value
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Upfront Load
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Load on Equity
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Load on Offering Price
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Acquisition Cap Rate
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Syndicated Cap Rate
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Premium / Discount
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Appraisal / Offering %
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Less Reserves %
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Strengths
- Substantial upfront capital reserves of $1,460,225 funded at close
- Clear capitalization plan with $21.53M equity and $21.2M debt
Concerns
- Total front-end offering expenses reach $2,373,875
- Acquisition fee of $770,625 paid to sponsor