The asset is acquired for $79,352,943 at a 5% acquisition cap rate, with total acquisition cost reported at $73,086,065 excluding certain capitalized reserves.
Valuation ladder
Acquisition price$79.35M
Offering price$83.56M+5.3%
Cap rate spread & load
Acquisition cap rate5.00%
Upfront load on offering4.06%
Load on equity5.00%
Load net of reserves-1.87%
Acquisition Price
$79,352,943
Offering Price
$83,565,000
Appraised Value
—
Upfront Load
—
Load on Equity
5%
Load on Offering Price
—
Acquisition Cap Rate
5%
Syndicated Cap Rate
—
Premium / Discount
—
Appraisal / Offering %
95.28%
Less Reserves %
4.61%
Strengths
- Established acquisition price of $79,352,943 on an institutional multifamily asset.
- Substantial reserve allocations embedded into total capitalized costs.
Concerns
- Initial cap rate is constrained at 5%.