The property was acquired for $33,065,000 at a 4.76% cap rate, resulting in a total acquisition cost of $34,329,352.
Valuation ladder
Acquisition price$33.06M
Offering price$39.41M+19.2%
Cap rate spread & load
Acquisition cap rate4.76%
Syndicated cap rate4.76%
0 bps of spread between acquisition and syndicated cap rate.
Upfront load on offering6.00%
Load on equity10.25%
Load net of reserves5.12%
Acquisition Price
$33,065,000
Offering Price
$39,408,522
Appraised Value
—
Upfront Load
$2,234,533
Load on Equity
—
Load on Offering Price
6%
Acquisition Cap Rate
4.76%
Syndicated Cap Rate
4.76%
Premium / Discount
—
Appraisal / Offering %
—
Less Reserves %
—
Strengths
- Newly constructed Class A townhome improvements
- Cap rate of 4.76% consistent between acquisition and syndication
Concerns
- Total acquisition cost expands to $34,329,352 over the $33,065,000 purchase price
- Single asset concentration risk in Gwinnett County