The real estate acquisition price is $78,566,250, reflecting a 4.75% acquisition cap rate. The syndicated cap rate is calculated at 5.63%, and carry costs are budgeted at $1,227,906.
Valuation ladder
Acquisition price$78.57M
Offering price$48.90M+-37.8%
Cap rate spread & load
Acquisition cap rate4.75%
Syndicated cap rate5.63%
88 bps of spread between acquisition and syndicated cap rate.
Upfront load (all-equity)7.65%equity = offering price
Load net of reserves-0.42%
Acquisition Price
$78,566,250
Offering Price
$48,900,000
Appraised Value
—
Upfront Load
$3,740,850
Load on Equity
—
Load on Offering Price
7.65%
Acquisition Cap Rate
4.75%
Syndicated Cap Rate
5.63%
Premium / Discount
—
Appraisal / Offering %
—
Less Reserves %
—
Strengths
- Syndicated cap rate is 5.63% on total acquisition cost.
Concerns
- Going-in acquisition cap rate is tight at 4.75%.
- Property construction year is not disclosed.