Acquisition price is $87,250,000 with an acquisition cap rate of 4.84%. Total acquisition cost with reserves stands at $94,349,404.
Valuation ladder
Acquisition price$87.25M
Offering price$98.68M+13.1%
Cap rate spread & load
Acquisition cap rate4.84%
Syndicated cap rate4.84%
0 bps of spread between acquisition and syndicated cap rate.
Upfront load on offering4.39%
Load on equity9.35%
Load net of reserves1.74%
Acquisition Price
$87,250,000
Offering Price
$98,681,389
Appraised Value
—
Upfront Load
—
Load on Equity
—
Load on Offering Price
—
Acquisition Cap Rate
4.84%
Syndicated Cap Rate
4.84%
Premium / Discount
—
Appraisal / Offering %
90.6%
Less Reserves %
—
Strengths
- Large-scale $87,250,000 acquisition.
- $1,500,000 allocated for capital improvement reserves.
Concerns
- Going-in cap rate of 4.84% is tight relative to debt cost.