The real estate has a stated acquisition price of $125,000,000 and an acquisition cap rate of 5.5%, with total acquisition cost of $45,265,528.
Valuation ladder
Acquisition price$125.00M
Offering price$51.42M+-58.9%
Cap rate spread & load
Acquisition cap rate5.50%
Upfront load (all-equity)11.00%equity = offering price
Load net of reserves10.03%
Acquisition Price
$125,000,000
Offering Price
$51,422,000
Appraised Value
—
Upfront Load
—
Load on Equity
11%
Load on Offering Price
11%
Acquisition Cap Rate
5.5%
Syndicated Cap Rate
—
Premium / Discount
—
Appraisal / Offering %
242.6%
Less Reserves %
—
Strengths
- Appraisal to offering ratio is 242.6%
- Acquisition cap rate is stated at 5.5%
Concerns
- Total acquisition cost is $45,265,528 against a stated acquisition price of $125,000,000
- Finance expenses are listed at $15,875,191