The base acquisition price is $184,000,000 (5.07% cap rate), bringing total acquisition cost to $210,750,000 including fees and reserves.
Valuation ladder
Acquisition price$184.00M
Offering price$136.25M+-26.0%
Cap rate spread & load
Acquisition cap rate5.07%
Upfront load (all-equity)8.00%equity = offering price
Load net of reserves3.34%
Acquisition Price
$184,000,000
Offering Price
$136,250,000
Appraised Value
—
Upfront Load
$10,900,000
Load on Equity
—
Load on Offering Price
8%
Acquisition Cap Rate
5.07%
Syndicated Cap Rate
—
Premium / Discount
—
Appraisal / Offering %
—
Less Reserves %
—
Strengths
- Modern construction completed in 2019
- Institutional scale with $184,000,000 purchase price
Concerns
- Acquisition cap rate compressed at 5.07%
- $26,750,000 spread between purchase price and total cost