The transaction includes an acquisition price of $139,624,813, an acquisition cap rate of 4.91%, and total capitalization with reserves of $146,150,000. Appraised value is not disclosed.
Valuation ladder
Acquisition price$139.62M
Offering price$77.40M+-44.6%
Cap rate spread & load
Acquisition cap rate4.91%
Upfront load (all-equity)77400000.00%equity = offering price
Load net of reserves-9.21%
Acquisition Price
$139,624,813
Offering Price
$77,400,000
Appraised Value
—
Upfront Load
$77,400,000
Load on Equity
—
Load on Offering Price
—
Acquisition Cap Rate
4.91%
Syndicated Cap Rate
—
Premium / Discount
—
Appraisal / Offering %
—
Less Reserves %
—
Strengths
- Substantial reserve funding totaling $6,525,187
- Class A 230-unit multifamily scale
Concerns
- Acquisition cap rate is tight at 4.91%
- Going-in property yield offers no positive spread over debt cost