Covers the $14,554,504 property acquisition price, initial 6% acquisition cap rate, and capital stack allocations.
Valuation ladder
Acquisition price$14.55M
Offering price$16.30M+12.0%
Appraised value$60.0% of offering
Cap rate spread & load
Acquisition cap rate6.00%
Upfront load on offering7.00%
Load on equity7.00%
Load net of reserves3.38%
Acquisition Price
$14,554,504
Offering Price
$16,296,240
Appraised Value
The acquisition cap rate is 6.0%, based on the first-year annualized rent, debt service, and projected expenses.
Upfront Load
—
Load on Equity
—
Load on Offering Price
7%
Acquisition Cap Rate
6%
Syndicated Cap Rate
—
Premium / Discount
—
Appraisal / Offering %
—
Less Reserves %
—
Strengths
- Acquired at a 6% acquisition cap rate
- Clear sources and uses schedule totaling $16,296,240
Concerns
- Front-end syndication load of 7% on offering price
- Specific appraised value dollar amount is not disclosed