The properties were acquired for a base purchase price of $41,700,000 with total acquisition costs reaching $78,264,323 and total acquisition cost with reserves at $86,671,730. Arapaho appraised at $43,600,000 as-is.
Valuation ladder
Acquisition price$41.70M
Offering price$91.38M+119.1%
Appraised value$43.60M47.7% of offering
Cap rate spread & load
Acquisition cap rate5.50%
Upfront load on offering5.15%
Load on equity9.00%
Load net of reserves-16.27%
Acquisition Price
$41,700,000
Offering Price
$91,382,493
Appraised Value
In connection with the Arapaho Acquisition Closing, the Arapaho Trust obtained an appraisal reflecting a market value for the Arapaho Property "as is" of $43,600,000.
Upfront Load
—
Load on Equity
9%
Load on Offering Price
—
Acquisition Cap Rate
5.5%
Syndicated Cap Rate
—
Premium / Discount
—
Appraisal / Offering %
86.64%
Less Reserves %
7.08%
Strengths
- Arapaho Property appraised at $43,600,000 as-is against portfolio purchase price of $41,700,000.
Concerns
- Total acquisition cost including reserves of $86,671,730 represents a significant increase over base purchase price.