The asset was acquired for $57,750,000 against an appraised value of $59,000,000. Total acquisition cost with reserves is $59,094,426 at a 5.83% cap rate.
Valuation ladder
Acquisition price$57.75M
Offering price$61.96M+7.3%
Appraised value$230.0% of offering
Cap rate spread & load
Acquisition cap rate5.83%
Syndicated cap rate5.83%
0 bps of spread between acquisition and syndicated cap rate.
Upfront load on offering4.63%
Load on equity9.35%
Acquisition Price
$57,750,000
Offering Price
$61,961,253
Appraised Value
An appraisal dated October 23, 2023 reflects an "as is" market value for the Property of $59,000,000, but no acquisition cap rate or going-in yield is stated in the excerpts provided.
Upfront Load
—
Load on Equity
—
Load on Offering Price
—
Acquisition Cap Rate
5.83%
Syndicated Cap Rate
5.83%
Premium / Discount
—
Appraisal / Offering %
95.37%
Less Reserves %
—
Strengths
- Acquisition price of $57,750,000 is below appraised value of $59,000,000.
- Going-in cap rate of 5.83% matches syndicated cap rate.
Concerns
- Total acquisition cost reaches $59,094,426 after reserves and expenses.
- Appraisal does not disclose independent market going-in cap rate.