The total acquisition cost is $25,273,068 with a syndicated cap rate of 5.02%. Master tenant reserves are set at $425,000, and title and recording costs are $133,580.
Valuation ladder
Offering price$13.99M
Cap rate spread & load
Syndicated cap rate5.02%
Upfront load (all-equity)10.50%equity = offering price
Load net of reserves7.46%
Acquisition Price
—
Offering Price
$13,988,903
Appraised Value
—
Upfront Load
—
Load on Equity
—
Load on Offering Price
—
Acquisition Cap Rate
—
Syndicated Cap Rate
5.02%
Premium / Discount
—
Appraisal / Offering %
—
Less Reserves %
—
Strengths
- Syndicated cap rate reported at 5.02%.
- Includes $425,000 in master tenant reserves.
Concerns
- Acquisition cap rate and independent valuation not disclosed.