The asset was acquired for $94,930,000, matching the as-is appraised fair market value, at an initial acquisition capitalization rate of 5.3%.
Valuation ladder
Acquisition price$94.93M
Offering price$106.75M+12.5%
Appraised value$94.93M88.9% of offering
Cap rate spread & load
Acquisition cap rate5.30%
Upfront load (all-equity)7.55%equity = offering price
Load net of reserves4.55%
Acquisition Price
$94,930,000
Offering Price
$106,751,437
Appraised Value
The "As-Is" appraised fair market value of the Property, including personal property, is $94,930,000.
Upfront Load
—
Load on Equity
—
Load on Offering Price
—
Acquisition Cap Rate
5.3%
Syndicated Cap Rate
—
Premium / Discount
—
Appraisal / Offering %
—
Less Reserves %
—
Strengths
- Acquired at appraised fair market value of $94,930,000
- 5.3% acquisition cap rate
Concerns
- No discount achieved relative to appraised valuation