The real estate was acquired for $5,800,000 at an initial going-in cap rate of 5.99%, bringing total acquisition costs with closing expenses to $6,058,339.
Valuation ladder
Acquisition price$5.80M
Offering price$6.66M+14.8%
Appraised value$60.0% of offering
Cap rate spread & load
Upfront load (all-equity)9.00%equity = offering price
Load net of reserves8.62%
Acquisition Price
$5,800,000
Offering Price
$6,657,515
Appraised Value
The acquisition going-in cap rate for the property is 5.99%.
Upfront Load
—
Load on Equity
—
Load on Offering Price
—
Acquisition Cap Rate
—
Syndicated Cap Rate
—
Premium / Discount
—
Appraisal / Offering %
100%
Less Reserves %
0.38%
Strengths
- 5.99% going-in acquisition cap rate
Concerns
- Total acquisition cost includes $258,339 in transaction/closing add-ons